EXHIBIT 12.02 LOUISVILLE GAS AND ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of $) 1998 1997 1996 1995 1994 ---- ---- ---- ---- ---- Earnings: Income before cumulative effect of a change in accounting principle per statements of income........................................ $ 78,120 $ 113,273 $ 107,941 $ 83,184 $ 61,689 Add: Federal income taxes - current..................... 39,618 59,074 34,019 35,824 30,926 State income taxes - current....................... 10,164 14,754 7,589 8,795 7,726 Deferred Federal income taxes - net................ 2,167 (4,171) 19,816 4,261 (950) Deferred State income taxes - net.................. 636 778 6,648 2,788 956 Investment tax credit - net........................ (4,312) (4,342) (4,406) (4,742) (4,619) Fixed charges...................................... 37,571 40,928 42,198 43,550 44,665 ---------- --------- --------- --------- --------- Earnings......................................... 163,964 220,294 213,805 173,660 140,393 ---------- --------- --------- --------- --------- ---------- --------- --------- --------- --------- Fixed Charges: Interest Charges per statements of income.......... 36,322 39,190 40,242 41,918 42,856 Add: Interest income (1).............................. - - 409 - - One-third of rentals charged to operating expense (2).......................... 1,249 1,738 1,547 1,632 1,809 ---------- --------- --------- --------- --------- Fixed charges................................ $ 37,571 $ 40,928 $ 42,198 $ 43,550 $ 44,665 ---------- --------- --------- --------- --------- ---------- --------- --------- --------- --------- Ratio of Earnings to Fixed Charges.................... 4.36 5.38 5.07 3.99 3.14 ---------- --------- --------- --------- --------- ---------- --------- --------- --------- --------- NOTE: (1) Interest income earned on pollution control revenue bond proceeds held and invested by trustees - netted against interest charges above. (2) In the Company's opinion, one-third of rentals represents a reasonable approximation of the interest factor.