DOMINION RESOURCES, INC. AND SUBSIDIARIES EXHIBIT 12
RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
Years ended December 31,
2001 (a) 2000 (b) 1999 1998 1997 (c)
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Earnings, as defined:
Earnings before income taxes and minority interests
in consolidated subsidiaries 914.0 600.0 829.0 887.0 679.0
Distributed income from unconsolidated investees,
less equity in earnings 33.0 6.3
Fixed charges included in the determination of net
income 1025.8 1041.7 583.0 656.1 684.1
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Total earnings, as defined 1972.8 1648.0 1412.0 1543.1 1363.1
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Fixed charges, as defined:
Interest charges 1063.6 1039.3 591.8 669.5 707.7
Rental interest factor 18.8 18.2 8.0 6.0 7.8
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Total fixed charges, as defined 1082.4 1057.5 599.8 675.5 715.5
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Ratio of Earnings to Fixed Charges 1.82 1.56 2.35 2.28 1.91
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(a) Earnings for the twelve months ended December 31, 2001 includes a one-time
$220 million charge related to the buyout of power purchase contracts and
non-utility generating plants previously serving the company under
long-term contracts, a one-time $40 million charge associated with the
divestiture of Saxon Capital, Inc., a $281 million charge from a write-down
of Dominion Capital assets, a $151 million charge associated with
Dominion's estimated Enron exposure, and $105 million in restructuring
charges associated with a senior management restructuring initiative
announced in November and other restructuring costs. Excluding these items
from the calculation above results in a ratio of earnings to fixed charges
for the twelve months ended December 31, 2001 of 2.56x.
(b) Earnings for the twelve months ended December 31, 2000 includes $579
million in restructuring and other acquisition-related costs resulting from
the CNG acquisition and a write-down at Dominion Capital, Inc. Dominion is
required to divest its financial services business as a result of the
acquisition of CNG. Excluding these items from the calculation above
results in a ratio of earnings to fixed charges for the twelve months ended
December 31, 2000 of 2.10x.
(c) Earnings for the twelve months ended December 31, 1997 includes the one-
time charge of $157 million for the windfall profits tax levied by the
United Kingdom government. Excluding this charge from the calculation above
results in a ratio of earnings to fixed charges for the twelve months ended
December 31, 1997 of 2.12x.