EXHIBIT 12.5
Page 1
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
---------------------------------------------------------------
1996 1997 1998 1999 2000
-------- -------- -------- -------- --------
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $ 40,587 $31,472 $39,748 $12,648 $22,847
Interest before reduction for amounts
capitalized 27,889 22,438 21,073 21,317 20,437
Provision for income taxes 33,421 26,658 32,504 18,834 26,121
Interest element of rentals charged to
income (a) 1,868 1,750 1,920 1,887 2,791
-------- ------- ------- ------- -------
Earnings as defined $103,765 $82,318 $95,245 $54,686 $72,196
======== ======= ======= ======= =======
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest on long-term debt $ 25,715 $20,458 $19,255 $19,268 $18,651
Interest on nuclear fuel obligations 219 276 28 90 364
Other interest expense 1,955 1,704 1,789 1,959 1,422
Interest element of rentals charged to
income (a) 1,868 1,750 1,920 1,887 2,791
-------- ------- ------- ------- -------
Fixed charges as defined $ 29,757 $24,188 $22,992 $23,204 $23,228
======== ======= ======= ======= =======
RATIO OF EARNINGS TO FIXED CHARGES (b) 3.49 3.40 4.14 2.36 3.11
==== ==== ==== ==== ====
<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 $642,000, $483,000 and $273,000 for
each of the three 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,
-------------------------------------------------------
1996 1997 1998 1999 2000
-------- -------- -------- -------- --------
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $ 40,587 $31,472 $39,748 $12,648 $22,847
Interest before reduction for amounts
capitalized 27,889 22,438 21,073 21,317 20,437
Provision for income taxes 33,421 26,658 32,504 18,834 26,121
Interest element of rentals charged
to income (a) 1,868 1,750 1,920 1,887 2,791
-------- ------- ------- ------- -------
Earnings as defined $103,765 $82,318 $95,245 $54,686 $72,196
======== ======= ======= ======= =======
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS):
Interest on long-term debt $ 25,715 $20,458 $19,255 $19,268 $18,651
Interest on nuclear fuel obligations 219 276 28 90 364
Other interest expense 1,955 1,704 1,789 1,959 1,422
Preferred stock dividend requirements 4,626 4,626 4,626 4,370 3,704
Adjustment to preferred stock dividends to
state on a pre-income tax basis 3,751 3,859 3,726 6,403 4,018
Interest element of rentals charged to
income (a) 1,868 1,750 1,920 1,887 2,791
-------- ------- ------- ------- -------
Fixed charges as defined plus preferred
stock dividend requirements (pre-income
tax basis) $ 38,134 $32,673 $31,344 $33,977 $30,950
======== ======= ======= ======= =======
RATIO OF EARNINGS TO FIXED CHARGES PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS) (b) 2.72 2.52 3.04 1.61 2.33
==== ==== ==== ==== ====
<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 $642,000, $483,000 and $273,000 for
each of the three years ended December 31, 1998, respectively. The
guarantee and related coal supply contract debt expired December 31, 1999.