Exhibit 12-B
Delmarva Power & Light Company
Ratio of Earnings to Fixed Charges and Preferred Dividends
(Dollars in Thousands)
12 Months
Ended
March 31, Year Ended December 31,
---------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------------ ------------- ------------- ------------- ------------- -------------
Net income $75,060 $105,709 $116,187 $117,488 $108,310 $111,076
------------------ ------------- ------------- ------------- ------------- -------------
Income taxes 51,782 72,155 78,340 75,540 67,613 67,102
------------------ ------------- ------------- ------------- ------------- -------------
Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 79,587 78,350 69,329 65,572 61,128 62,651
Other interest 12,562 12,835 12,516 10,353 9,336 9,245
Preferred dividend require-
ments of a subsidiary
trust 5,687 5,687 1,390 - - -
------------------ ------------- ------------- ------------- ------------- -------------
Total fixed charges 97,836 96,872 83,235 75,925 70,464 71,896
------------------ ------------- ------------- ------------- ------------- -------------
Nonutility capitalized interest (132) (208) (311) (304) (256) (246)
------------------ ------------- ------------- ------------- ------------- -------------
Earnings before income taxes
and fixed charges $224,546 $274,528 $277,451 $268,649 $246,131 $249,828
================= ============ ============ ============ ============ ============
Fixed charges $ 97,836 $ 96,872 $ 83,235 $ 75,925 $ 70,464 $ 71,896
Preferred dividend requirements 7,371 7,556 14,961 16,185 15,948 14,803
------------------ ------------- ------------- ------------- ------------- -------------
$105,207 $104,428 $98,196 $92,110 $86,412 $86,699
================= ============ ============ ============ ============ ============
Ratio of earnings to fixed charges
and preferred dividends 2.13 2.63 2.83 2.92 2.85 2.88
For purposes of computing the ratio, earnings are net income plus income taxes
and fixed charges, less nonutility capitalized interest. Fixed charges consist
of interest on long- and short-term debt, amortization of debt discount,
premium, and expense, dividends on preferred securities of a subsidiary trust,
plus the interest factor associated with the Company's major leases, and one-
third of the remaining annual rentals. Preferred dividend requirements represent
annualized preferred dividend requirements multiplied by the ratio that pre-tax
income bears to net income.
-19-