EXHIBIT 12.5
Page 1
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
-------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $ 38,930 $ 40,587 $31,472 $39,748 $12,648
Interest before reduction for amounts
capitalized 31,350 27,889 22,438 21,073 21,317
Provision for income taxes 32,591 33,421 26,658 32,504 18,834
Interest element of rentals charged to
income (a) 1,865 1,868 1,750 1,920 1,887
-------- -------- ------- ------- -------
Earnings as defined $104,736 $103,765 $82,318 $95,245 $54,686
======== ======== ======= ======= =======
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest on long-term debt $ 28,937 $ 25,715 $20,458 $19,255 $19,268
Interest on nuclear fuel obligations 407 219 276 28 90
Other interest expense 2,006 1,955 1,704 1,789 1,959
Interest element of rentals charged to
income (a) 1,865 1,868 1,750 1,920 1,887
-------- -------- ------- ------- -------
Fixed charges as defined $ 33,215 $ 29,757 $24,188 $22,992 $23,204
======== ======== ======= ======= =======
RATIO OF EARNINGS TO FIXED CHARGES (b) 3.15 3.49 3.40 4.14 2.36
==== ==== ==== ==== ====
<FN>
- -------------------------
(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where
no readily defined interest element can be determined.
(b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier
aggregating $795,000, $642,000, $483,000 and $273,000 for each of the four years ended
December 31, 1998, respectively. The guarantee and related coal supply contract debt expired
December 31, 1999.
EXHIBIT 12.5
Page 2
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31,
-------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $ 38,930 $ 40,587 $31,472 $39,748 $12,648
Interest before reduction for amounts
capitalized 31,350 27,889 22,438 21,073 21,317
Provision for income taxes 32,591 33,421 26,658 32,504 18,834
Interest element of rentals charged to
income (a) 1,865 1,868 1,750 1,920 1,887
-------- -------- ------- ------- -------
Earnings as defined $104,736 $103,765 $82,318 $95,245 $54,686
======== ======= ======= ======= =======
FIXED CHARGES AS DEFINED IN REGULATION
S-K PLUS PREFERRED STOCK DIVIDEND
REQUIREMENTS (PRE-INCOME TAX BASIS):
Interest on long-term debt $ 28,937 $ 25,715 $20,458 $19,255 $19,268
Interest on nuclear fuel obligations 407 219 276 28 90
Other interest expense 2,006 1,955 1,704 1,789 1,959
Preferred stock dividend requirements 4,775 4,626 4,626 4,626 4,370
Adjustment to preferred stock dividends
to state on a pre-income tax basis 3,939 3,751 3,859 3,726 6,403
Interest element of rentals charged to
income (a) 1,865 1,868 1,750 1,920 1,887
-------- -------- ------- ------- --------
Fixed charges as defined plus preferred stock
dividend requirements (pre-income tax basis) $ 41,929 $ 38,134 $32,673 $31,344 $33,977
======== ======== ======= ======= =======
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX
BASIS) (b) 2.50 2.72 2.52 3.04 1.61
==== ==== ==== ==== ====
<FN>
- -------------------------
(a) Includes the interest element of rentals where determinable plus 1/3 of rental expense where no
readily defined interest element can be determined.
(b) These ratios exclude fixed charges applicable to the guarantee of the debt of a coal supplier
aggregating $795,000, $642,000, $483,000 and $273,000 for each of the four years ended December 31,
1998, respectively. The guarantee and related coal supply contract debt expired December 31, 1999.