Exhibit 12-B
Delmarva Power & Light Company
Ratio of Earnings to Fixed Charges and Preferred Dividends
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(Dollars in Thousands)
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(unaudited)
12 M/E
3/31/96 1995 1994 1993 1992 1991
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Net income (1) $117,224 $117,488 $108,310 $111,076 $98,526 $80,506
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Income taxes (1) 76,205 75,540 67,613 67,102 54,834 43,249
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Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 67,714 65,572 61,128 62,651 66,976 68,133
Other interest 10,796 10,353 9,336 9,245 8,449 10,192
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Total fixed charges 78,510 75,925 70,464 71,896 75,425 78,325
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Nonutility capitalized interest (305) (304) (256) (246) (231) (143)
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Earnings before income taxes
and fixed charges $271,634 $268,649 $246,131 $249,828 $228,554 $201,937
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Fixed charges $78,510 $75,925 $70,464 $71,896 $75,425 $78,325
Preferred dividend requirements 15,930 16,185 15,948 14,803 15,785 11,672
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$94,440 $92,110 $86,412 $86,699 $91,210 $89,997
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Ratio of earnings to fixed charges
and preferred dividends 2.88 2.92 2.85 2.88 2.51 2.24
For purposes of computing the ratio, earnings are net income plus income taxes
and fixed charges, 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.