EXHIBIT 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
12 MONTHS
ENDED 12 MONTHS ENDED
JUNE 30, DECEMBER 31,
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2000 1999 (c) 1998 (c) 1997 (c) 1996 (c)
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Fixed charges, as defined:
Interest on long-term debt................ $ 277 $ 233 $ 203 $ 196 $ 207
Interest on short-term debt
and other interest..................... 62 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.................... 8 9 8 9 13
Capitalized........................... 1 2 2 2
Estimated interest component of
operating rentals....................... 22 20 18 15 8
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Total fixed charges............... $ 374 $ 314 $ 266 $ 250 $ 249
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Earnings, as defined:
Net income (a)............................ $ 529 $ 478 $ 379 $ 296 $ 329
Preferred Stock Dividend
Requirements............................ 25 26 25 24 28
Less undistributed income of
equity method investments............... 53 56 3 (25) 8
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501 448 401 345 349
Add (Deduct):
Income taxes.............................. 200 174 259 238 253
Amortization of capitalized interest
on capital leases...................... 2 2 2 2 4
Total fixed charges as above
(excluding capitalized interest
on capital lease obligations)........... 373 313 264 248 247
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Total earnings.................... $1,076 $ 937 $ 926 $ 833 $ 853
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Ratio of earnings to fixed
charges (b) (c)........................... 2.88 2.98 3.48 3.33 3.43
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(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:
June 2000, 2.77; 1999, 2.68; 1998, 3.10; and 1997, 3.51
(c) Ratio of earnings to fixed charges for years 1999 and prior were
recalculated to give proper effect of undistributed earnings of equity
method investments.