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EXHIBIT 12(C)(1)
THE COMBINED CLEVELAND ELECTRIC ILLUMINATING AND TOLEDO EDISON COMPANIES
COMPUTATION OF PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED AND
PREFERENCE STOCK DIVIDENDS
(Pre-Income Tax Basis)
(Thousands of Dollars)
Statement Setting Forth Computations Showing Satisfaction of the
Requirements Specified in Regulation S-K, Item 503(d):
YEAR ENDED DECEMBER 31, 9 MONTHS 9 MONTHS
------------------------------------------------------------------- ENDED ENDED
1989 1990 1991 1992 1993 9/30/93 9/30/94
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Net Income (Loss).................. $ 330,919 $ 323,752 $ 295,771 $ 275,616 $ (876,422) $135,507 $217,842
Add
Federal Income Taxes Expense
(Credit)..................... 193,651 107,877 168,130 128,532 (387,445) 52,521 98,964
Interest (a)................... 419,765 421,487 404,858 381,601 373,700 276,930 278,310
Provision for Interest Element
of Rentals (b)............... 207,638 204,703 205,839 197,586 193,396 144,887 142,202
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Total Earnings............ $1,151,973 $1,057,819 $1,074,598 $ 983,335 $ (696,771) $609,845 $737,318
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Fixed Charges and Preferred and
Preference Stock
Dividends (pre-income tax basis)
Dividends accrued................ $ 65,617 $ 61,841 $ 60,649 $ 64,507 $ 67,132 $ 50,181 $ 49,654
Less portion of 4 1/4% preferred
dividends which are tax
deductible..................... 280 280 280 280 272 210 204
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$ 65,337 $ 61,561 $ 60,369 $ 64,227 $ 66,860 $ 49,971 $ 49,450
Ratio of income before taxes to
income (c)..................... 1.59 1.33 1.57 1.47 1.44 1.39 1.45
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Above total adjusted to
requirement before federal
income taxes................... 103,886 81,876 94,779 94,414 96,278 69,460 71,703
Portion of 4 1/4% preferred
dividends which are tax
deductible..................... 280 280 280 280 272 210 204
Fixed Charges.................... 627,403 626,190 610,697 579,187 567,096 421,817 420,512
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Total Fixed Charges and
Preferred and Preference
Stock Dividends......... $ 731,569 $ 708,346 $ 705,756 $ 673,881 $ 663,646 $491,487 $492,419
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Ratio of Earnings to Fixed Charges
and Preferred and Preference
Stock Dividends
(pre-income tax basis)........... 1.57 1.49 1.52 1.46 (1.05) 1.24 1.50
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(a) Includes interest on first mortgage bonds, bank loans, commercial paper,
pollution control notes, and other interest included in operation expenses;
amortization of net premium, discount and expense on debt; and capitalized
interest on nuclear fuel lease obligations.
(b) Includes the interest component of Beaver Valley and Bruce Mansfield sale
and leaseback rentals, leased nuclear fuel in the reactor, and other
miscellaneous rentals.
(c) Computation of ratio of income before taxes to income:
Income (Loss).................... $ 330,919 $ 323,752 $ 295,771 $ 275,616 $ (876,422) $135,507 $217,842
Federal income tax expense
(credit)....................... 193,651 107,877 168,130 128,532 (387,445) 52,521 98,964
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Income (Loss) before taxes....... $ 524,570 $ 431,629 $ 463,901 $ 404,148 $(1,263,867) $188,028 $316,806
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Ratio of income before taxes to
income......................... 1.59 1.33 1.57 1.47 1.44 1.39 1.45
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