EX-12.B 9 ppl-12312017ex12b.htm EXHIBIT 12.B Exhibit


Exhibit 12(b)
 
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
Year
 
Year
 
Year
 
Year
 
Year
 
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings, as defined:
 

 
 

 
 

 
 

 
 

Income Before Income Taxes
$
575

 
$
552

 
$
416

 
$
423

 
$
317

Total fixed charges as below
153

 
141

 
139

 
131

 
117

Total earnings
$
728

 
$
693

 
$
555

 
$
554

 
$
434

 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 

 
 

 
 

 
 

Interest charges (a)
$
149

 
$
137

 
$
135

 
$
127

 
$
113

Estimated interest component of operating rentals
4

 
4

 
4

 
4

 
4

Total fixed charges (b)
$
153

 
$
141

 
$
139

 
$
131

 
$
117

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (c)
4.8

 
4.9

 
4.0

 
4.2

 
3.7

 
(a)
Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.  
(b)
Interest on unrecognized tax benefits is not included in fixed charges.
(c)
PPL Electric does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.