Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
12 Months 12 Months
Ended Ended
June 30, December 31,
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2001 2000 1999 (c) 1998 (c) 1997 (c)
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Fixed charges, as defined:
Interest on long-term debt....................................... $ 340 $ 323 $ 233 $ 203 $ 196
Interest on short-term debt and other interest................... 63 64 47 33 26
Amortization of debt discount, expense and premium - net......... 6 5 4 2 2
Interest on capital lease obligations:
Charged to expense............................................. 4 9 8 9
Capitalized.................................................... 1 2 2
Estimated interest component of operating rentals................ 41 25 20 18 15
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Total fixed charges....................................... $ 450 $ 421 $ 314 $ 266 $ 250
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Earnings, as defined:
Net income (a)................................................... $ 598 $ 491 $ 492 $ 379 $ 296
Preferred security dividend requirements......................... 32 26 26 25 24
Less undistributed income of equity method investments........... 63 74 56 3 (25)
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567 443 462 401 345
Add (Deduct):
Income taxes..................................................... 316 294 174 259 238
Amortization of capitalized interest on capital leases........... 2 2 2 2
Total fixed charges as above (excluding capitalized
interest on capitalized lease obligations)..................... 450 421 313 264 248
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Total earnings............................................ $ 1,333 $ 1,160 $ 951 $ 926 $ 833
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Ratio of earnings to fixed charges (b)................................ 2.96 2.75 3.03 3.48 3.33
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(a) 2001, 2000, 1999 and 1998 net income excluding extraordinary items.
(b) Based on earnings excluding nonrecurring items, the ratio of earnings to
fixed charges are: June 2001, 2.89; 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.