EX-12.7 9 duk-20151231x10kxexx127.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY INDIANA, INC. Exhibit
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)
2015
 
2014
 
2013
 
2012
 
2011
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations
 
$
479

 
$
556

 
$
581

 
$
(123
)
 
$
242

Fixed charges
 
181

 
182

 
185

 
184

 
178

Total earnings
 
$
660

 
$
738

 
$
766

 
$
61

 
$
420

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
179

 
$
176

 
$
179

 
$
178

 
$
171

Estimate of interest within rental expense
 
2

 
6

 
6

 
6

 
7

Total fixed charges
 
$
181

 
$
182

 
$
185

 
$
184

 
$
178

Ratio of earnings to fixed charges
 
3.6

 
4.1

 
4.1

 
0.3

(a) 
2.4

(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.