EX-12.2 5 y50403exv12w2.htm EX-12.2: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS EX-12.2
 

Exhibit 12.2
 
NRG Energy, Inc
Computation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements
 
                                                 
                            For the Period
 		    For the Period
 		 
    For the Year
 		    For the Year
 		    For the Year
 		    For the Year
 		    December 6,
 		    January 1,
 		 
    Ended
 		    Ended
 		    Ended
 		    Ended
 		    2003 Through
 		    2003 Through
 		 
    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 5,
 		 
(In millions except ratio)   2007     2006     2005     2004     2003     2003  
   
 
Earnings:
                                               
Income before taxes from continuing operations before income tax
  $ 946     $ 865     $ 110     $ 232     $ 11     $ 3,241  
Minority interest in earnings
                                    —       —  
Less:
                                               
Undistributed equity in earning of unconsolidated affiliates
    (33 )     (33 )     (8 )     (1 )     2       (41 )
Capitalized interest
    (11 )     (5 )     —       —       —       —  
Preference dividends — tax effected
    (91 )     (83 )     (33 )     (1 )                
Add:
                                               
Fixed charges
    789       682       233       250       17       293  
 
 
Total Earnings:
  $ 1,600     $ 1,426     $ 302     $ 480     $ 30     $ 3,493  
 
 
Fixed Charges:
                                               
Interest expense
  $ 657     $ 562     $ 186     $ 222     $ 15     $ 271  
Interest capitalized
    11       5       —       —       —       —  
Amortization of debt issuance costs
    22       22       6       9       1       18  
Amortization of debt discount
    6       6       5       14       1       —  
Approximation of interest in rental expense
    2       4       3       4       0       4  
Tax effect of preference dividends
    91       83       33       1                  
 
 
Total Fixed Charges:
  $ 789     $ 682     $ 233     $ 250     $ 17     $ 293  
 
 
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
    2.03       2.09       1.30       1.92       1.76       11.92  
 
 


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