Exhibit 12.1
Duquesne Light Company and Subsidiary
Calculation of Ratio of Earnings to Fixed Charges
(Thousands of Dollars)
Year Ended December 31,
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1997 1996 1995 1994 1993
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FIXED CHARGES:
Interest on long-term debt $ 81,592 $ 82,505 $ 89,139 $ 94,646 $102,938
Other interest 752 1,632 2,599 1,095 2,387
Monthly Income Preferred Securities dividend requirements 12,562 7,921 - - -
Amortization of debt discount, premium and expense - net 5,828 5,973 6,252 6,381 5,541
Portion of lease payments representing an interest factor 44,208 44,357 44,386 44,839 45,925
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Total Fixed Charges $144,942 $142,388 $142,376 $146,961 $156,791
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EARNINGS:
Income from continuing operations $141,820 $149,860 $151,070 $147,449 $144,787
Income taxes 73,838* 83,008* 92,894* 84,191* 77,237*
Fixed charges as above 144,943 142,388 142,376 146,961 156,791
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Total Earnings $360,601 $375,256 $386,340 $378,601 $378,815
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RATIO OF EARNINGS TO FIXED CHARGES 2.49 2.64 2.71 2.58 2.42
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Duquesne's share of the fixed charges of an unaffiliated coal
supplier, which amounted to approximately $2.7 million for the twelve months
ended December 31, 1997, has been excluded from the ratio.
*Earnings related to income taxes reflect a $17.0 million, $12 million, $13.5
million, $13.5 million and $10.4 million decrease for the twelve months ended
December 31, 1997, 1996, 1995, 1994 and 1993, 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 2.61, 2.72, 2.81, 2.67 and 2.48
for the twelve months ended December 31, 1997, 1996, 1995, 1994 and 1993,
respectively.