EX-12.A 3 ppl10q3-06exhibit12a.htm EXHIBIT 12(A) exhibit 12(a)

PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
   
12 Months
Ended
March 31,
  
12 Months
Ended
December 31,
                         
   
2006
  
2005
  
2004
  
2003
  
2002
  
2001
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
464
    
$
465
    
$
491
    
$
417
    
$
486
    
$
351
  
Interest on short-term debt and
  other interest
    
19
      
29
      
20
      
25
      
70
      
44
  
Amortization of debt discount,
  expense and premium - net
    
22
      
23
      
8
      
41
      
25
      
17
  
Estimated interest component of
  operating rentals
    
32
      
32
      
34
      
45
      
38
      
36
  
Preferred securities distributions of
  subsidiaries on a pre-tax basis
    
5
      
5
      
5
      
45
      
79
      
64
  
                                                 
                                                 
Total fixed charges
  
$
542
    
$
554
    
$
558
    
$
573
    
$
698
    
$
512
  
                                                 
Earnings, as defined:
                                                
Net income (a)
  
$
853
    
$
744
    
$
721
    
$
740
    
$
444
    
$
167
  
Preferred security dividend requirements
    
3
      
3
      
3
      
30
      
66
      
52
  
Less undistributed income (loss)
  of equity method investments
    
(15
)
    
(14
)
    
(14
)
    
(19
)
    
(23
)
    
20
  
     
871
      
761
      
738
      
789
      
533
      
199
  
Add:
                                                
Income taxes
    
182
      
121
      
203
      
179
      
214
      
261
  
Total fixed charges as above
  (excluding capitalized interest and
  preferred security distributions of
  subsidiaries on a pre-tax basis)
    
524
      
540
      
547
      
521
      
598
      
419
  
                                                 
Total earnings
  
$
1,577
    
$
1,422
    
$
1,488
    
$
1,489
    
$
1,345
    
$
879
  
                                                 
Ratio of earnings to fixed charges
    
2.9
      
2.6
      
2.7
      
2.6
      
1.9
      
1.7
  
                                     
Ratio of earnings to combined fixed charges
  and preferred stock dividends (b)
    
2.9
      
2.6
      
2.7
      
2.6
      
1.9
      
1.7
  

(a)
  
Net income excludes minority interest, loss from discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.