DQE EXHIBIT 12.1
DQE and Subsidiaries
Calculation of Ratio of Earnings to Fixed Charges
and Preferred and Preference Stock Dividend Requirements
(Thousands of Dollars)
Year Ended December 31,
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2001 2000 1999 1998 1997
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FIXED CHARGES:
Interest on long-term debt $ 62,308 $ 73,546 $ 79,454 $ 81,076 $ 87,420
Other interest 26,686 36,118 28,212 14,556 13,823
Portion of lease payments representing an interest factor 3,113 6,783 42,973 44,146 44,208
Dividend requirement (a) 16,018 14,131 14,684 15,612 21,649
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Total Fixed Charges $ 108,125 $ 130,578 $ 165,323 $ 155,390 $ 167,100
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EARNINGS:
Income (Loss) from continuing operations $ (153,381) $ 153,551 $ 201,416 $ 196,688 $ 199,101
Income taxes (56,081) 70,350 110,722(b) 100,982(b) 95,805(b)
Fixed charges as above 108,125 130,578 165,323 155,390 167,100
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Total Earnings (Loss) $ (101,337) $ 354,479 $ 477,461 $ 453,060 $ 462,006
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RATIO OF EARNINGS TO FIXED CHARGES (0.94)(c) 2.72 2.89 2.92 2.76
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(a) Includes $12.6 million in dividend requirements for the Monthly Income
Preferred Securities per year.
(b) Earnings related to income taxes reflect a $3.0 million, $12.0 million and
$17.0 million decrease for the twelve months ended December 31, 1999, 1998
and 1997, respectively, due to a financial statement reclassification
related to Statement of Financial Accounting Standards No. 109, Accounting
for Income Taxes. The ratio of earnings to fixed charges, absent this
reclassification, equals 2.86, 2.99 and 2.87 for the twelve months ended
December 31, 1999, 1998 and 1997, respectively.
(c) In order to achieve a ratio of earnings to fixed charges of one to one,
total earnings would need to increase by approximately $209.5 million.