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Exhibit 12
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THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
Computation of Ratio of Earnings to Fixed Charges
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(Thousands of Dollars)
Statement Setting Forth Computations Showing Satisfaction of the Requirements
Specified in Regulation S-K, Item 503(d):
Year Ended December 31 Jan. 1 - Nov. 8 -
---------------------------------------------------- Nov. 7 Dec. 31,
1993 1994 1995 1996 1997 1997
---- ---- ---- ---- ------------------
Consolidated Net Income (Loss) ($587,147) $ 185,431 $ 183,719 $ 116,553 $ 95,191 $ 19,290
Add
Federal Income Taxes Expense (Credit) (247,966) 85,455 95,561 69,120 78,940 14,029
Interest (a) 252,479 254,248 251,793 244,789 212,957 35,472
Provision for Interest Element of Rentals (b) 81,131 79,462 79,642 79,503 59,078 10,008
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Total Earnings ($501,503) $ 604,596 $ 610,715 $ 509,965 $ 446,166 $ 78,799
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Fixed Charges
Interest (a) $ 252,479 $ 254,248 $ 251,793 $ 244,789 $ 212,957 $ 35,472
Provision for Interest Element of Rentals (b) 81,131 79,462 79,642 79,503 59,078 10,008
--------- --------- --------- --------- --------- --------
Total Fixed Charges $ 333,610 $ 333,710 $ 331,435 $ 324,292 $ 272,035 $ 45,480
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Ratio of Earnings to Fixed Charges (1.50) 1.81 1.84 1.57 1.64 1.73
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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 Bruce Mansfield sale and leaseback
rentals, leased nuclear fuel in the reactor, and other miscellaneous
rentals.