Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
12 Months
Ended 12 Months Ended
March 31, December 31,
----------------- ------------------------------------------------------
2000 1999 1998 1997 1996
---------------- ------------ ------------ ------------ -----------
Fixed charges, as defined:
Interest on long-term debt ............... $ 254 $233 $203 $196 $207
Interest on short-term debt
and other interest .................... 52 47 33 26 17
Amortization of debt discount, expense
and premium - net....................... 5 4 2 2 2
Interest on capital lease
obligations
Charged to expense ................... 10 8 8 9 13
Capitalized .......................... 1 2 2 2
Estimated interest component of
operating rentals ...................... 21 20 18 15 8
Proportionate share of fixed charges
of 50-percent-or-less-owned
persons ................................ 1 1 1 1
----------- ------------ ------------ ------------ -----------
Total fixed charges .............. $ 342 $314 $267 $251 $250
=========== ============ ============ ============ ===========
Earnings, as defined:
Net income (a)............................ $ 499 $478 $379 $296 $329
Preferred and Preference Stock Dividend
Requirements............................ 26 26 25 24 28
Less undistributed income of less
than 50-percent-owned persons ........
----------- ------------ ------------ ------------ -----------
525 504 404 320 357
Add (Deduct):
Income taxes ............................. 182 174 259 238 253
Amortization of capitalized interest
on capital leases...................... 2 2 2 2 4
Total fixed charges as above
(excluding capitalized interest
on capital lease obligations) .......... 342 313 265 248 248
----------- ------------ ------------ ------------ -----------
Total earnings ................... $1,051 $993 $930 $808 $862
=========== ============ ============ ============ ===========
Ratio of earnings to fixed
charges (b) .............................. 3.07 3.16 3.48 3.22 3.45
=========== ============ ============ ============ ===========
(a) 2000, 1999 and 1998 net income excluding extraordinary items.
(b) Based on earnings excluding one-time adjustments, the ratio of earnings to
fixed charges are: March 2000, 2.80; 1999, 2.86; 1998, 3.10; and 1997, 3.40