EX-12.7 10 duk-20141231x10kxexx127.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY INDIANA DUK-2014.12.31-10K-EX-12.7
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)
2014
 
2013
 
2012
 
2011
 
2010
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations
 
$
556

 
$
581

 
$
(123
)
 
$
242

 
$
441

Fixed charges
 
182

 
185

 
184

 
178

 
161

Total earnings
 
$
738

 
$
766

 
$
61

 
$
420

 
$
602

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
176

 
$
179

 
$
178

 
$
171

 
$
154

Estimate of interest within rental expense
 
6

 
6

 
6

 
7

 
7

Total fixed charges
 
$
182

 
$
185

 
$
184

 
$
178

 
$
161

Ratio of earnings to fixed charges
 
4.1

 
4.1

 
0.3

(a) 
2.4

 
3.7

(a)
Earnings insufficient to cover fixed charges by approximately $123 million during the year ended December 31, 2012 due primarily to a non-cash impairment charge.