Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
12 Months
Ended 12 Months Ended
September 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............................. $ 299 $ 233 $ 203 $ 196 $ 207
Interest on short-term debt and other interest......... 57 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.................................. 6 9 8 9 13
Capitalized......................................... 1 2 2 2
Estimated interest component of operating rentals...... 23 20 18 15 8
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Total fixed charges.......................... $ 390 $ 314 $ 266 $ 250 $ 249
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Earnings, as defined:
Net income (a)......................................... $ 509 $ 478 $ 379 $ 296 $ 329
Preferred Stock Dividend Requirements.................. 26 26 25 24 28
Less undistributed income of equity method
investments.......................................... 62 56 3 (25) 8
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473 448 401 345 349
Add (Deduct):
Income taxes........................................... 296 174 259 238 253
Amortization of capitalized interest on capital
leases............................................... 2 2 2 2 4
Total fixed charges as above (excluding capitalized
interest on capital lease obligations)............... 390 313 264 248 247
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Total earnings............................... $ 1,161 $ 937 $ 926 $ 833 $ 853
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Ratio of earnings to fixed charges (b) (c)................ 2.98 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: September 2000, 2.65; 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.