EX-12.7 13 duk-20161231x10kxexx127.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY INDIANA, LLC 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)
2016
 
2015
 
2014
 
2013
 
2012
 
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations
 
$
606

 
$
479

 
$
556

 
$
581

 
$
(123
)
 
Fixed charges
 
193

 
181

 
182

 
185

 
184

 
Total earnings
 
$
799

 
$
660

 
$
738

 
$
766

 
$
61

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
185

 
$
179

 
$
176

 
$
179

 
$
178

 
Estimate of interest within rental expense
 
8

 
2

 
6

 
6

 
6

 
Total fixed charges
 
$
193

 
$
181

 
$
182

 
$
185

 
$
184

 
Ratio of earnings to fixed charges
 
4.1

 
3.6

 
4.1

 
4.1

 
0.3

(a) 
(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.