EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED AND PREFERENCE DIVIDEND REQUIREMENTS
12 MONTHS ENDED
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DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
1998 1997 1996 1995 1994
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(IN MILLIONS OF DOLLARS)
Net Income ............................................... $ 327.7 $ 282.8 $ 310.8 $ 338.0 $ 323.6
Taxes on Income .......................................... 181.3 161.5 169.2 172.4 156.7
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Adjusted Net Income ...................................... $ 509.0 $ 444.3 $ 480.0 $ 510.4 $ 480.3
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Fixed Charges:
Interest and Amortization of Debt Discount and
Expense and Premium on all Indebtedness ............... $ 255.3 $ 234.2 $ 203.9 $ 206.7 $ 204.2
Capitalized Interest ................................... 3.6 8.4 15.7 15.0 12.4
Interest Factor in Rentals ............................. 1.9 1.9 1.5 2.1 2.0
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Total Fixed Charges .................................... $ 260.8 $ 244.5 $ 221.1 $ 223.8 $ 218.6
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Preferred and Preference Dividend
Requirements: (1)
Preferred and Preference Dividends .................... $ 21.8 $ 28.7 $ 38.5 $ 40.6 $ 39.9
Income Tax Required ................................... 12.0 16.4 20.9 20.4 19.1
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Total Preferred and Preference Dividend
Requirements ......................................... $ 33.8 $ 45.1 $ 59.4 $ 61.0 $ 59.0
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Total Fixed Charges and Preferred and Preference
Dividend Requirements .................................. $ 294.6 $ 289.6 $ 280.5 $ 284.8 $ 277.6
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Earnings (2) ............................................. $ 766.2 $ 680.4 $ 685.4 $ 719.2 $ 686.5
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Ratio of Earnings to Fixed Charges ....................... 2.94 2.78 3.10 3.21 3.14
Ratio of Earnings to Combined Fixed Charges and
Preferred and Preference Dividend Requirements ......... 2.60 2.35 2.44 2.52 2.47
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(1) Preferred and preference dividend requirements consist of an amount equal
to the pre-tax earnings which would be required to meet dividend
requirements on preferred stock and preference stock.
(2) Earnings are deemed to consist of net income which includes earnings of
BGE's consolidated subsidiaries, equity in the net income of BGE's
unconsolidated subsidiary, income taxes (including deferred income taxes
and investment tax credit adjustments), and fixed charges other than
capitalized interest.