Exhibit 12-B
Atlantic City Electric Company
Ratio of Earnings to Fixed Charges and Preferred Dividends
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(Dollars in Thousands)
12 Months
Ended Year Ended December 31,
June 30, ------------------------------------------------------------
2001 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- --------
Income before extraordinary item $ 71,377 $ 54,434 $ 63,930 $ 30,276 $ 85,747 $ 75,017
-------- -------- -------- -------- -------- --------
Income taxes 56,517 36,746 49,326 18,178 50,442 36,958
-------- -------- -------- -------- -------- --------
Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 69,611 76,178 60,562 63,940 64,501 64,847
Other interest 4,149 4,518 3,837 3,435 3,574 4,019
Preferred dividend require-
ments of subsidiary
trusts 7,619 7,619 7,634 6,052 5,775 1,428
-------- -------- -------- -------- -------- --------
Total Fixed charges 81,379 88,315 72,033 73,427 73,850 70,294
-------- -------- -------- -------- -------- --------
Earnings before extraordinary
item, income taxes and
fixed charges $209,273 $179,495 $185,289 $121,881 $210,039 $182,269
======== ======== ======== ======== ======== ========
Fixed charges $ 81,379 $ 88,315 $ 72,033 $ 73,427 $ 73,850 $ 70,294
Preferred dividend requirements 3,820 3,571 3,777 5,289 7,506 14,214
-------- -------- -------- -------- -------- --------
$ 85,199 $ 91,886 $ 75,810 $ 78,716 $ 81,356 $ 84,508
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
and preferred dividends 2.46 1.95 2.44 1.55 2.58 2.16
For purposes of computing the ratio, earnings are income before extraordinary
item plus income taxes and fixed charges. Fixed charges consist of interest on
long- and short-term debt, amortization of debt discount, premium, and expense,
dividends on preferred securities of subsidiary trusts, and the estimated
interest component of rentals. Preferred dividend requirements represent
annualized preferred dividend requirements multiplied by the ratio that pre-tax
income bears to net income.