EX-12.3 5 dex123.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY OHIO Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY OHIO

EXHIBIT 12.3

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

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

 

     Successor     Predecessor  
     Year
Ended
December 31,
2010		     Year
Ended
December 31,
2009		     Year
Ended
December 31,
2008		      Year
Ended
December 31,
2007		      Nine
Months
Ended
December 31,
2006		     Three
Months
Ended
March 31,
2006		  
     (in millions)  

Earnings as defined for fixed charges calculation

                 

Add:

                 

Pretax income from continuing operations

    $ (309 )    $ (240 )    $ 458       $ 415       $ 102         $ 186   

Fixed charges

      122        128        122         139         100        35   

Deduct:

                 

Interest capitalized(a)

      8        4        19         30         14        3   
                                                  

Total earnings (as defined for the Fixed Charges calculation)(b)

    $ (195 )    $ (116 )    $ 561       $ 524       $ 188      $ 218   
                                                  

Fixed charges:

                 

Interest on debt, including capitalized portions(a)

    $ 117      $ 121      $ 113       $ 130       $ 95      $ 33   

Estimate of interest within rental expense

      5        7        9         9         5        2   
                                                  

Total fixed charges

    $ 122      $ 128      $ 122       $ 139       $ 100      $ 35   
                                                  

Ratio of earnings to fixed charges

      —   (b)      —   (b)      4.6         3.8         1.9        6.2   

 

(a) Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Operations.
(b) Earnings insufficient to cover fixed charges by approximately $317 million and $244 million during the years ended December 31, 2010 and December 31, 2009, respectively, due primarily to a non-cash goodwill impairment charges.