EXHIBIT 12.5
Page 1
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
--------------------------------------------------------------
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items.................... $31,472 $39,748 $12,648 $22,847 $ 41,041
Interest before reduction for amounts capitalized.... 22,438 21,073 21,317 20,437 18,172
Provision for income taxes........................... 26,658 32,504 18,834 26,121 39,921
Interest element of rentals charged to income (a).... 1,750 1,920 1,887 2,791 1,316
------- ------- ------- ------- --------
Earnings as defined................................ $82,318 $95,245 $54,686 $72,196 $100,450
======= ======= ======= ======= ========
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest on long-term debt........................... $20,458 $19,255 $19,268 $18,651 $ 16,971
Interest on nuclear fuel obligations................. 276 28 90 364 141
Other interest expense............................... 1,704 1,789 1,959 1,422 1,060
Interest element of rentals charged to income (a).... 1,750 1,920 1,887 2,791 1,316
------- ------- ------- ------- --------
Fixed charges as defined........................... $24,188 $22,992 $23,204 $23,228 $ 19,488
======= ======= ======= ======= ========
RATIO OF EARNINGS TO FIXED CHARGES (b).................. 3.40 4.14 2.36 3.11 5.15
==== ==== ==== ==== ====
<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
$483,000 and $273,000 for each of the two years ended December 31, 1998, respectively. The guarantee and
related coal supply contract debt expired December 31, 1999.
</FN>
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,
----------------------------------------------------------------
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items........................... $31,472 $39,748 $12,648 $22,847 $ 41,041
Interest before reduction for amounts capitalized........... 22,438 21,073 21,317 20,437 18,172
Provision for income taxes.................................. 26,658 32,504 18,834 26,121 39,921
Interest element of rentals charged to income (a)........... 1,750 1,920 1,887 2,791 1,316
------- ------- ------- ------- --------
Earnings as defined....................................... $82,318 $95,245 $54,686 $72,196 $100,450
======= ======= ======= ======= ========
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS):
Interest on long-term debt.................................. $20,458 $19,255 $19,268 $18,651 $ 16,971
Interest on nuclear fuel obligations........................ 276 28 90 364 141
Other interest expense...................................... 1,704 1,789 1,959 1,422 1,060
Preferred stock dividend requirements....................... 4,626 4,626 4,370 3,704 3,703
Adjustment to preferred stock dividends to state
on a pre-income tax basis 3,859 3,726 6,403 4,018 3,534
Interest element of rentals charged to income (a)........... 1,750 1,920 1,887 2,791 1,316
------- ------- ------- ------- --------
Fixed charges as defined plus preferred stock
dividend requirements (pre-income tax basis)............ $32,673 $31,344 $33,977 $30,950 $ 26,725
======= ======= ======= ======= ========
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS) (b)...... 2.52 3.04 1.61 2.33 3.76
==== ==== ==== ==== ====
<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
$483,000 and $273,000 for each of the two years ended December 31, 1998, respectively. The guarantee and
related coal supply contract debt expired December 31, 1999.
</FN>