EX-12.4 11 ex12-4.htm EXHIBIT 12 - CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES - CEI ex12-4.htm
EXHIBIT 12.4
Page 1
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
  
                               
   
Year Ended December 31,
  
   
2005
    
2006
    
2007
    
2008
    
2009 (b)
  
   
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 233,101     $ 307,946     $ 278,283     $ 286,486     $ (10,992 )
Interest and other charges, before reduction for amounts capitalized
                                        
and deferred
     132,226       141,710       138,977       125,976       137,171  
Provision for income taxes
     153,014       188,662       163,363       136,786       (10,183 )
Interest element of rentals charged to income (a)
     47,643       45,955       29,829       1,919       2,380  
                                         
Earnings as defined
   $ 565,984     $ 684,273     $ 610,452     $ 551,167     $ 118,376  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K:
                                        
Interest before reduction for amounts capitalized and deferred
   $ 132,226     $ 141,710     $ 138,977     $ 125,976     $ 137,171  
Interest element of rentals charged to income (a)
     47,643       45,955       29,829       1,919       2,380  
                                         
Fixed charges as defined
   $ 179,869     $ 187,665     $ 168,806     $ 127,895     $ 139,551  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
     3.15       3.65       3.62       4.31       0.85  
                                         
                                         
                                         
 
                                        
                                         
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
  
                                         
(b) The earnings as defined in 2009 would need to increase $21,175,000 for the fixed charge ratio to be 1.0.
  
 
 
EXHIBIT 12.4
Page 2
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
  
                               
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES PLUS
  
PREFERRED STOCK DIVIDEND REQUIREMENTS (PRE-INCOME TAX BASIS)
  
                               
   
Year Ended December 31,
  
   
2005
    
2006
    
2007
    
2008
    
2009 (b)
  
   
(Dollars in thousands)
  
EARNINGS AS DEFINED IN REGULATION S-K:
                              
Income before extraordinary items
   $ 233,101     $ 307,946     $ 278,283     $ 286,486     $ (10,992 )
Interest and other charges, before reduction for amounts capitalized
                                        
and deferred
     132,226       141,710       138,977       125,976       137,171  
Provision for income taxes
     153,014       188,662       163,363       136,786       (10,183 )
Interest element of rentals charged to income (a)
     47,643       45,955       29,829       1,919       2,380  
                                         
Earnings as defined
   $ 565,984     $ 684,273     $ 610,452     $ 551,167     $ 118,376  
                                         
FIXED CHARGES AS DEFINED IN REGULATION S-K PLUS
                                        
PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS):
                                        
Interest before reduction for amounts capitalized and deferred
   $ 132,226     $ 141,710     $ 138,977     $ 125,976     $ 137,171  
Preferred stock dividend requirements
     2,918       -       -       -       -  
Adjustments to preferred stock dividends
                                        
to state on a pre-income tax basis
     1,932       -       -       -       -  
Interest element of rentals charged to income (a)
     47,643       45,955       29,829       1,919       2,380  
                                         
Fixed charges as defined plus preferred stock
                                        
dividend requirements (pre-income tax basis)
   $ 184,719     $ 187,665     $ 168,806     $ 127,895     $ 139,551  
                                         
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
                                        
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
                                        
(PRE-INCOME TAX BASIS)
     3.06       3.65       3.62       4.31       0.85  
                                         
 
                                        
                                         
                                         
(a)  Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
          
                                         
(b) The earnings as defined in 2009 would need to increase $21,175,000 for the fixed charge ratio to be 1.0.