Exhibit 12
Conectiv
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
12 Months
Ended Year Ended December 31,
June 31, ----------------------------------------------------------------
2001 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- --------
Income from continuing operations $440,744 $203,815 $113,578 $153,201 $101,218 $107,251
-------- -------- -------- -------- -------- --------
Income taxes 319,637 151,275 105,816 105,817 72,155 78,340
-------- -------- -------- -------- -------- --------
Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 161,514 166,256 149,732 133,796 78,350 69,329
Other interest 62,913 60,818 37,743 26,199 12,835 12,516
Preferred dividend require-
ments of subsidiaries 20,427 20,383 19,894 17,871 10,178 10,326
-------- -------- -------- -------- -------- --------
Total fixed charges 244,854 247,457 207,369 177,866 101,363 92,171
-------- -------- -------- -------- -------- --------
Nonutility capitalized interest (15,283) (9,278) (3,264) (1,444) (208) (311)
-------- -------- -------- -------- -------- --------
Undistributed earnings of equity
method investees - (4,496) - - - -
-------- -------- -------- -------- -------- --------
Income from continuing operations
before income taxes and
fixed charges $989,952 $588,773 $423,499 $435,440 $274,528 $277,451
======== ======== ======== ======== ======== ========
Total fixed charges shown above $244,854 $247,457 $207,369 $177,866 $101,363 $ 92,171
Increase preferred stock dividend
requirements of subsidiaries to
a pre-tax amount 5,164 5,253 6,123 4,901 3,065 6,025
-------- -------- -------- -------- -------- --------
Fixed charges for ratio
computation $250,018 $252,710 $213,492 $182,767 $104,428 $ 98,196
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 3.96 2.33 1.98 2.38 2.63 2.83
For purposes of computing the ratio, earnings are income from continuing
operations item plus income taxes and fixed charges, less nonutility capitalized
interest and undistributed earnings of equity method investees. Fixed charges
include gross interest expense, the estimated interest component of rentals, and
preferred stock dividend requirements of subsidiaries. Preferred stock dividend
requirements for purposes of computing the ratio have been increased to an
amount representing the pre-tax earnings which would be required to cover such
dividend requirements.