EXHIBIT 12.5
Page 1
PENNSYLVANIA POWER COMPANY
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.......................... $12,648 $22,847 $ 41,041 $ 47,717 $ 37,833
Interest before reduction for amounts capitalized.......... 21,317 20,437 18,172 16,674 15,526
Provision for income taxes................................. 18,834 26,121 39,921 43,044 35,959
Interest element of rentals charged to income (a).......... 1,887 2,791 1,316 326 167
------- ------- --------- -------- --------
Earnings as defined...................................... $54,686 $72,196 $ 100,450 $107,761 $ 89,485
======= ======= ========= ======== ========
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest on long-term debt................................. $19,268 $18,651 $ 16,971 $ 15,521 $ 14,228
Interest on nuclear fuel obligations....................... 90 364 141 8 --
Other interest expense..................................... 1,959 1,422 1,060 1,145 1,298
Interest element of rentals charged to income (a).......... 1,887 2,791 1,316 326 167
-------- ------- --------- -------- --------
Fixed charges as defined................................. $23,204 $23,228 $ 19,488 $ 17,000 $ 15,693
======= ======= ========= ======== ========
RATIO OF EARNINGS TO FIXED CHARGES ........................... 2.36 3.11 5.15 6.34 5.70
==== ==== ==== ==== ====
- -------------------------
<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>
97
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,
1999 2000 2001 2002 2003
------- -------- -------- -------- --------
(Dollars in thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items......................... $12,648 $22,847 $ 41,041 $ 47,717 $37,833
Interest before reduction for amounts capitalized......... 21,317 20,437 18,172 16,674 15,526
Provision for income taxes................................ 18,834 26,121 39,921 43,044 35,959
Interest element of rentals charged to income (a)......... 1,887 2,791 1,316 326 167
------- ------- -------- -------- -------
Earnings as defined..................................... $54,686 $72,196 $100,450 $107,761 $89,485
======= ======= ======== ======== =======
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS):
Interest on long-term debt................................ $19,268 $18,651 $ 16,971 $ 15,521 $14,228
Interest on nuclear fuel obligations...................... 90 364 141 8 --
Other interest expense.................................... 1,959 1,422 1,060 1,145 1,298
Preferred stock dividend requirements..................... 4,370 3,704 3,703 3,699 3,731
Adjustment to preferred stock dividends to state
on a pre-income tax basis .............................. 6,403 4,018 3,534 3,274 3,469
Interest element of rentals charged to income (a)......... 1,887 2,791 1,316 326 167
------- ------- -------- -------- -------
Fixed charges as defined plus preferred stock
dividend requirements (pre-income tax basis).......... $33,977 $30,950 $ 26,725 $ 23,973 $22,893
======= ======= ======== ======== =======
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)........ 1.61 2.33 3.76 4.50 3.91
==== ==== ==== ==== ====
- -------------------------
<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>
98