EXHIBIT 12.2
Page 1
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
---------------------------------------------
1994 1995 1996 1997 1998
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $31,260 $38,930 $40,587 $31,472 $39,748
Interest before reduction for amounts
capitalized 34,947 31,350 27,889 22,438 21,073
Provision for income taxes 24,333 32,591 33,421 26,658 32,504
Interest element of rentals charged to
income (a) 1,652 1,865 1,868 1,750 1,920
------- -------- -------- ------- -------
Earnings as defined $92,192 $104,736 $103,765 $82,318 $95,245
======= ======== ======== ======= =======
FIXED CHARGES AS DEFINED IN REGULATION S-K:
Interest on long-term debt $32,130 $28,937 $25,715 $20,458 $19,255
Interest on nuclear fuel obligations 519 407 219 276 28
Other interest expense 2,298 2,006 1,955 1,704 1,789
Interest element of rentals charged to income (a) 1,652 1,865 1,868 1,750 1,920
------- ------- ------- ------- -------
Fixed charges as defined $36,599 $33,215 $29,757 $24,188 $22,992
======= ======= ======= ======= =======
RATIO OF EARNINGS TO FIXED CHARGES (b) 2.52 3.15 3.49 3.40 4.14
==== ==== ==== ==== ====
<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 $935,000, $795,000, $642,000, $483,000 and $273,000 for each of the five years ended
December 31, 1998, respectively.
EXHIBIT 12.2
Page 2
PENNSYLVANIA POWER COMPANY
RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
Year Ended December 31,
---------------------------------------------
1994 1995 1996 1997 1998
---- ---- ---- ---- ----
(Dollars in Thousands)
EARNINGS AS DEFINED IN REGULATION S-K:
Income before extraordinary items $31,260 $ 38,930 $ 40,587 $31,472 $39,748
Interest before reduction for
amounts capitalized 34,947 31,350 27,889 22,438 21,073
Provision for income taxes 24,333 32,591 33,421 26,658 32,504
Interest element of rentals charged to
income (a) 1,652 1,865 1,868 1,750 1,920
------- -------- -------- ------- -------
Earnings as defined $92,192 $104,736 $103,765 $82,318 $95,245
======= ======== ======== ======= =======
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS):
Interest on long-term debt $32,130 $ 28,937 $ 25,715 $20,458 $19,255
Interest on nuclear fuel obligations 519 407 219 276 28
Other interest expense 2,298 2,006 1,955 1,704 1,789
Preferred stock dividend requirements 5,364 4,775 4,626 4,626 4,626
Adjustment to preferred stock dividends
to state on a pre-income tax basis 4,121 3,939 3,751 3,859 3,726
Interest element of rentals charged to
income (a) 1,652 1,865 1,868 1,750 1,920
------- -------- -------- ------- -------
Fixed charges as defined plus preferred
stock dividend requirements (pre-income
tax basis) $46,084 $ 41,929 $ 38,134 $32,673 $31,344
======= ======== ======== ======= =======
RATIO OF EARNINGS TO FIXED CHARGES PLUS
PREFERRED STOCK DIVIDEND REQUIREMENTS
(PRE-INCOME TAX BASIS) (b) 2.00 2.50 2.72 2.52 3.04
==== ==== ==== ==== ====
<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 $935,000, $795,000, $642,000, $483,000 and $273,000 for each of the five years ended
December 31, 1998, respectively.