EXHIBIT 12.01 KENTUCKY UTILITIES COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of $) 1998 1997 1996 1995 1994 ---- ---- ---- ---- ---- Earnings: Net Income......................................... $ 72,764 $ 85,713 $ 86,163 $ 76,842 $ 77,512 Add: Federal income taxes - current..................... 45,704 38,500 39,221 24,451 38,594 State income taxes - current....................... 10,008 8,718 8,248 5,324 9,157 Deferred Federal income taxes - net................ (2,492) 2,971 1,845 11,759 (1,479) Deferred State income taxes - net.................. 54 1,635 1,905 3,743 (80) Deferred investment tax credit-net................. - - - (71) (86) Investment tax credit - net........................ (3,829) (4,036) (4,013) (4,024) (4,024) Undistributed income of............................ Electric Energy, Inc............................ 622 (37) 24 99 (39) Fixed charges...................................... 39,318 40,324 40,266 40,694 35,136 ------- ------- ------- ------- ------- Earnings......................................... 162,149 173,788 173,659 158,817 154,691 ---------- --------- --------- --------- --------- Fixed Charges: Interest Charges per statements of income.......... 38,660 39,729 39,688 40,116 34,558 Add: One-third of rentals charged to operating expense (1).......................... 658 595 578 578 578 ---------- --------- --------- --------- --------- Fixed charges................................ $ 39,318 $ 40,324 $ 40,266 $ 40,694 $ 35,136 ---------- --------- --------- --------- --------- Ratio of Earnings to Fixed Charges.................... 4.12 4.31 4.31 3.90 4.40 ---------- --------- --------- --------- --------- ---------- --------- --------- --------- --------- NOTE: (1) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor.