EXHIBIT 12.3
Page 1
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
-------------------------------------------------------------
1999 2000 2001 2002 2003
-------- -------- -------- -------- -------
(Dollars in thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items........................... $194,089 $210,424 $177,905 $136,952 $197,033
Interest and other charges, before reduction for
amounts capitalized....................................... 211,960 201,739 192,102 189,502 164,132
Provision for income taxes.................................. 123,869 138,426 137,887 84,938 131,285
Interest element of rentals charged to income (a)........... 66,680 65,616 59,497 51,170 49,761
-------- -------- -------- -------- --------
Earnings as defined....................................... $596,598 $616,205 $567,391 $462,562 $542,211
======== ======== ======== ======== ========
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest expense............................................ $211,960 $201,739 $191,727 $180,602 $159,632
Subsidiary's preferred stock dividend requirements.......... -- -- 375 8,900 4,500
Interest element of rentals charged to income (a)........... 66,680 65,616 59,497 51,170 49,761
-------- -------- -------- -------- --------
Fixed charges as defined.................................. $278,640 $267,355 $251,599 $240,672 $213,893
======== ======== ======== ======== ========
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES................ 2.14 2.30 2.26 1.92 2.53
==== ==== ==== ==== ====
- -------------------------
<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.
</FN>
93
EXHIBIT 12.3
Page 2
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
(Dollars in thousands)
Year Ended December 31,
-------------------------------------------------------------
1999 2000 2001 2002 2003
-------- -------- -------- -------- -------
(Dollars in thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items........................... $194,089 $210,424 $177,905 $136,952 $197,033
Interest and other charges, before reduction for amounts
capitalized............................................... 211,960 201,739 192,102 189,502 164,132
Provision for income taxes.................................. 123,869 138,426 137,887 84,938 131,285
Interest element of rentals charged to income (a)........... 66,680 65,616 59,497 51,170 49,761
-------- -------- -------- -------- --------
Earnings as defined....................................... $596,598 $616,205 $567,391 $462,562 $542,211
======== ======== ======== ======== ========
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS):
Interest expense............................................ $211,960 $201,739 $191,727 $180,602 $159,632
Preferred stock dividend requirements....................... 33,524 20,843 25,213 24,590 12,026
Adjustments to preferred stock dividends
to state on a pre-income tax basis........................ 21,395 13,012 20,178 8,204 5,137
Interest element of rentals charged to income (a)........... 66,680 65,616 59,497 51,170 49,761
-------- -------- -------- -------- --------
Fixed charges as defined plus preferred stock
dividend requirements (pre-income tax basis)............ $333,559 $301,210 $296,615 $264,566 $226,556
======== ======== ======== ======== ========
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS)...................................... 1.79 2.05 1.91 1.75 2.39
==== ==== ==== ==== ====
- -------------------------
<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.
</FN>
94