Exhibit 12-B
Delmarva Power & Light 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 $ 255,578 $141,816 $142,179 $112,410 $105,709 $116,187
--------- -------- -------- -------- -------- --------
Income taxes 168,464 81,510 95,321 72,276 72,155 78,340
--------- -------- -------- -------- -------- --------
Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and expense 76,188 77,178 77,790 81,132 78,350 69,329
Other interest 5,633 7,512 6,117 9,328 12,835 12,516
Preferred dividend require-
ments of a subsidiary trust 5,687 5,687 5,687 5,688 5,687 1,390
--------- -------- -------- -------- -------- --------
Total fixed charges 87,508 90,377 89,594 96,148 96,872 83,235
--------- -------- -------- -------- -------- --------
Nonutility capitalized interest - - - - (208) (311)
--------- -------- -------- -------- -------- --------
Earnings before extraordinary item,
income taxes, and fixed charges $ 511,550 $313,703 $327,094 $280,834 $274,528 $277,451
--------- -------- -------- -------- -------- --------
Fixed charges $ 87,508 $ 90,377 $ 89,594 $ 96,148 $ 96,872 $ 83,235
Preferred dividend requirements 8,277 7,787 7,417 7,150 7,556 14,961
--------- -------- -------- -------- -------- --------
$ 95,785 $ 98,164 $ 97,011 $103,298 $104,428 $ 98,196
========= ======== ======== ======== ======== ========
Ratio of earnings to fixed
charges and preferred dividends 5.34 3.20 3.37 2.72 2.63 2.83
For purposes of computing the ratio, earnings are income before extraordinary
item plus income taxes and fixed charges, less nonutility capitalized interest.
Fixed charges consist of interest on long- and short-term debt, amortization of
debt discount, premium, and expense, dividends on preferred securities of a
subsidiary trust, plus 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.