Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
2000 1999 (c) 1998 (c) 1997 (c) 1996 (c)
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Fixed charges, as defined:
Interest on long-term debt....................... $ 323 $ 233 $ 203 $ 196 $ 207
Interest on short-term debt
and other interest.............................. 64 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............................. 4 9 8 9 13
Capitalized.................................... 1 2 2 2
Estimated interest component of
operating rentals............................... 25 20 18 15 8
------ ---------- ----- ----- -----
Total fixed charges.......................... $ 421 $ 314 $ 266 $ 250 $ 249
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Earnings, as defined:
Net income (a)................................... $ 491 $ 492 $ 379 $ 296 $ 329
Preferred Stock Dividend
Requirements.................................... 26 26 25 24 28
Less undistributed income of equity
method investments............................. 74 56 3 (25) 8
------ ---------- ----- ----- -----
443 462 401 345 349
Add (Deduct):
Income taxes..................................... 294 174 259 238 253
Amortization of capitalized interest
on capital leases............................... 2 2 2 2 4
Total fixed charges as above
(excluding capitalized interest
on capital lease obligations)................... 421 313 264 248 247
------ ----------- ----- ----- -----
Total earnings.............................. $1,160 $ 951 $ 926 $ 833 $ 853
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Ratio of earnings to fixed
charges (b)...................................... 2.75 3.03 3.48 3.33 3.43
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(a) 2000, 1999 and 1998 net income excluding extraordinary items and minority
interest.
(b) Based on earnings excluding nonrecurring items, the ratio of earnings to
fixed charges are: 2000, 2.66; 1999, 2.80; 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.