PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS ($000) 12 Months Ended 12/31/1998 -------------- NET INCOME ................................................ $ 532,378 ADD BACK: INCOME TAXES: OPERATING INCOME ....................................... 348,497 NON-OPERATING INCOME ................................... (28,843) ---------- NET TAXES .............................................. $ 319,654 ========== FIXED CHARGES: TOTAL INTEREST ......................................... $ 317,243 ANNUAL RENTALS ESTIMATE ................................ 8,973 ---------- TOTAL FIXED CHARGES .................................... $ 326,216 ========== EARNINGS REQUIRED FOR PREFERRED DIVIDENDS: DIVIDENDS ON PREFERRED STOCK ........................... $ 13,109 ADJUSTMENT TO PREFERRED DIVIDENDS* ..................... $ 7,871 ========== $ 20,980 ========== FIXED CHARGES AND PREFERRED DIVIDENDS .................. $ 347,196 ========== EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES ......... $1,199,228 ========== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND EARNINGS REQUIRED FOR PREFERRED DIVIDENDS .............. 3.45 =========== - - ------------ * ADDITIONAL CHARGE EQUIVALENT TO EARNINGS REQUIRED TO ADJUST DIVIDENDS ON PREFERRED STOCK TO A PRE-TAX BASIS