Exhibit 12(b)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
2000 (d) 1999 (c) 1998 (c) 1997 (c) 1996 (c)
--------- -------- -------- -------- --------
Fixed charges, as defined:
Interest on long-term debt................................ $ 223 $ 205 $ 188 $ 195 $ 207
Interest on short-term debt
and other interest...................................... 16 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 .................................... 4 9 8 9 13
Capitalized ........................................... 1 2 2 2
Estimated interest component of
operating rentals ....................................... 14 19 18 15 8
----- ----- ----- ----- -----
Total fixed charges ................................. $ 261 $ 249 $ 232 $ 240 $ 243
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Earnings, as defined:
Net income (a)........................................... $ 250 $ 444 $ 409 $ 348 $ 357
Less undistributed income of equity
method investment.........................................
----- ----- ----- ----- -----
$ 250 $ 444 409 348 357
Add (Deduct):
Income taxes ............................................. 171 151 273 248 251
Amortization of capitalized
interest on capital leases ............................ 2 2 2 2 4
Total fixed charges as above
(excluding capitalized interest
on capital lease obligations) ......................... 260 248 230 238 241
----- ----- ----- ----- -----
Total earnings .................................. $ 683 $ 845 $ 914 $ 836 $ 853
===== ===== ===== ===== =====
Ratio of earnings to fixed
charges (b) (c).......................................... 2.62 3.39 3.94 3.48 3.51
===== ===== ===== ===== =====
(a) 2000, 1999 and 1998 net income excluding extraordinary items.
(b) Based on earnings excluding nonrecurring items the ratio of earnings to
fixed charges are: 2000, 2.47; 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.
(d) Due to the corporate realignment on July 1, 2000, prior years are not
comparable to 2000.