EX-12.7 64 exhibit12.7.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY INDIANA  

 

 

EXHIBIT 12.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY INDIANA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

(in millions)

2012 

 

2011 

 

2010 

 

2009 

 

2008 

Earnings as defined for fixed charges calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income from continuing operations

$

 (123) 

 

$

 242 

 

$

 441 

 

$

 317 

 

$

 408 

 

Fixed charges

 

 184 

 

 

 178 

 

 

 161 

 

 

 165 

 

 

 140 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized(a)

 

 39 

 

 

 33 

 

 

 19 

 

 

 13 

 

 

 10 

Total earnings

$

 22 

 

$

 387 

 

$

 583 

 

$

 469 

 

$

 538 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt, including capitalized portions

$

 178 

 

$

 171 

 

$

 154 

 

$

 157 

 

$

 133 

 

Estimate of interest within rental expense

 

 6 

 

 

 7 

 

 

 7 

 

 

 8 

 

 

 7 

Total fixed charges

$

 184 

 

$

 178 

 

$

 161 

 

$

 165 

 

$

 140 

Ratio of earnings to fixed charges

 

 0.1 (b)

 

 

 2.2 

 

 

 3.6 

 

 

 2.9 

 

 

 3.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations.

(b)

Earnings insufficient to cover fixed charges by approximately $162 million during the year ended December 31, 2012 due primarily to a non-cash impairment charge.