EX-12.2 3 a2202097zex-12_2.htm EX-12.2
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Exhibit 12.2

NRG Energy, Inc.
Computation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements

 
  For the Year Ended December 31,  
 
  2010   2009   2008   2007   2006  
 
  (In millions except ratio)
 

Earnings:

                               

Income from continuing operations before income tax

  $ 753   $ 1,669   $ 1,766   $ 933   $ 861  

Net loss attributable to noncontrolling interest

    (1 )   (1 )            

Less:

                               

Undistributed equity in earnings of unconsolidated affiliates

    (44 )   (41 )   (44 )   (33 )   (33 )

Capitalized interest

    (36 )   (37 )   (45 )   (11 )   (5 )

Preference dividends — tax effected

    (14 )   (52 )   (90 )   (91 )   (83 )

Add:

                               

Fixed charges

    692     755     724     806     686  

Amortization of capitalized interest

    4     3     1          
                       
 

Total Earnings:

  $ 1,354   $ 2,296   $ 2,312   $ 1,604   $ 1,426  
                       

Fixed Charges:

                               

Interest expense

  $ 600   $ 610   $ 546   $ 657   $ 562  

Interest capitalized

    36     37     45     11     5  

Amortization of debt issuance costs

    25     31     22     26     22  

Amortization of debt discount

    7     13     15     19     10  

Approximation of interest in rental expense

    10     12     6     2     4  

Tax effect of preference dividends

    14     52     90     91     83  
                       
 

Total Fixed Charges:

  $ 692   $ 755   $ 724   $ 806   $ 686  
                       

Ratio of Earnings to Combined Fixed Charges and Preference Dividends

    1.96     3.04     3.19     1.99     2.08  
                       



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NRG Energy, Inc. Computation of Ratio of Earnings to Fixed Charges And Preferred Stock Dividend Requirements