Exhibit 12(b)
PPL ELECTRIC UTILITIES 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..................... $ 226 $ 205 $ 188 $ 195 $ 207
Interest on short-term debt
and other interest.......................... 19 12 14 17 11
Amortization of debt discount, expense
and premium - net............................ 4 3 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............................ 20 19 18 15 8
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Total fixed charges.................... $ 277 $ 249 $ 232 $ 240 $ 243
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Earnings, as defined:
Net income (a)................................ $ 501 $ 444 $ 409 $ 348 $ 357
Less undistributed income of
equity method investment.....................
----- ----- ----- ----- -----
501 444 409 348 357
Add (Deduct):
Income taxes................................... 176 151 273 248 251
Amortization of capitalized
interest on capital leases................... 2 2 2 2 4
Total fixed charges as above
(excluding capitalized interest
on capital lease obligations)................ 277 248 230 238 241
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Total earnings......................... $ 956 $ 845 $ 914 $ 836 $ 853
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Ratio of earnings to fixed
charges (b) (c)................................ 3.45 3.39 3.94 3.48 3.51
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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, 3.29; 1999, 3.10; and 1998, 3.53
(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.