Exhibit 12-B Delmarva Power & Light Company Ratio of Earnings to Fixed Charges and Preferred Dividends ---------------------------------------------------------- (Dollars in Thousands) ---------------------- 1994 1993 1992 1991 1990 -------- -------- ------- ------- ------- Net income (1) $108,310 $111,076 $98,526 $80,506 $37,311 -------- -------- ------- ------- ------- Income taxes (1) 67,613 67,102 54,834 43,249 24,556 -------- -------- ------- ------- ------- Fixed charges: Interest on long-term debt including amortization of discount, premium and expense 61,128 62,651 66,976 68,133 63,709 Other interest 9,336 9,245 8,449 10,192 8,618 -------- -------- ------- ------- ------- Total fixed charges 70,464 71,896 75,425 78,325 72,327 ------- ------- ------- ------- ------- Equity in net loss of less-than- fifty-percent-owned invest- ments accounted for under the equity method 0 0 0 0 12,772 Nonutility capitalized interest (256) (246) (231) (143) (373) -------- -------- ------- ------- ------- Earnings before income taxes and fixed charges $246,131 $249,828 $228,554 $201,937 $146,593 ======== ======== ======== ======== ======== Fixed Charges $ 70,464 $ 71,896 $ 75,425 $ 78,325 $ 72,327 Preferred dividend requirements 15,948 14,803 15,785 11,672 14,406 -------- -------- ------- ------- ------- $86,412 $86,699 $91,210 $89,997 $86,733 ======== ======== ======= ======= ======= Ratio of earnings to fixed charges and preferred dividends 2.85 2.88 2.51 2.24 1.69 For purposes of computing the ratio, earnings are net income plus income taxes, fixed charges, and equity in the net loss of less-than-fifty-percent-owned investments which are accounted for under the equity method, less nonutility capitalized interest. Fixed charges consist of interest on long- and short-term debt, amortization of debt discount, premium, and expense, plus the interest factor associated with the Company's major leases, and one-third of the remaining annual rentals. Preferred dividend requirements represent annualized preferred dividend requirements multiplied by the ratio that pre-tax income bears to net income. (1)Net income and income taxes related to the cumulative effect of a change in accounting for unbilled revenues recorded in 1991 are excluded from the computation of this ratio.