Exhibit 12.2
Atlantic City Electric Company
SEC Registration Method
Ratio of Earnings to Combined Fixed Charges & Preferred Dividend Requirements
Twelve Twelve
Years Ended December 31, Months Months
------------------------------------------------------------- Ended June Ended June
1991 1992 1993 1994 1995 30, 1995 30, 1996
--------- --------- --------- --------- --------- --------- ---------
Net Income ......................... $ 107,428 $ 107,446 $ 109,026 $ 93,174 $ 98,752 $ 76,298 $ 100,642
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Federal Income Taxes
Current ........................... $ 37,759 $ 33,661 $ 29,680 $ 30,014 $ 32,458 $ 40,507 38,209
Deferred .......................... 3,957 16,064 18,747 8,650 18,230 (11,925) 14,495
Investment Tax Credits-net ......... (2,537) (2,534) (2,534) (2,534) (2,534) (2,534) (2,534)
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Total Taxes ........................ $ 39,179 $ 47,191 $ 45,893 $ 36,130 $ 48,154 $ 26,048 $ 50,170
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Fixed charges
Interest on long term debt ........ $ 49,081 $ 50,719 $ 56,279 $ 53,747 $ 56,547 $ 54,229 $ 57,309
Amortization of debt expense,
discount and premium, net ....... 2,520 2,565 3,106 3,599 3,782 3,644 4,010
Interest on short term debt ....... 1,946 1,579 1,421 1,778 3,081 2,933 3,200
Other interest expense ............ 1,179 1,099 212 (664) (531) (291) 72
Interest factors associated with
rentals ......................... 5,551 4,177 3,884 4,148 4,364 4,298 4,116
--------- --------- --------- --------- --------- --------- ---------
Total Fixed Charges ................ $ 60,277 $ 60,139 $ 64,902 $ 62,608 $ 67,243 $ 68,813 $ 68,707
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Earnings before income taxes and
fixed charges(a) .................. $ 205,279 $ 213,716 $ 218,850 $ 190,884 $ 212,777 $ 165,934 $ 218,189
========= ========= ========= ========= ========= ========= =========
Preferred dividend requirements(b) $ 22,395 $ 25,636 $ 24,730 $ 23,196 $ 21,760 $ 21,021 $ 19,588
========= ========= ========= ========= ========= ========= =========
Combined fixed charges and preferred
dividend requirement .............. $ 82,672 $ 85,775 $ 89,632 $ 85,804 $ 89,003 $ 85,394 $ 88,295
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to Combined Fixed
Charges & Preferred Dividend
Requirements....................... 2.48 2.49 2.44 2.22 2.39 1.93 2.47
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(a) Excludes the amount of capitalized interest associated with fixed charges.
(b) Represents pre-tax earnings required to cover preferred stock dividend
requirement.