EX-12 3 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

 

     For Years Ended December 31,

 

($ in thousands)


   2005

    2004

    2003

    2002

    2001

 

Earnings:

                                        

Income (loss) from continuing operations

   $ 75,145     $ 129,732     $ (308,875 )   $ (465,749 )   $ 458,134  

Exclude amounts reflected in line above:

                                        

Income tax expense (benefit)

     64,771       79,669       (202,170 )     (313,112 )     255,531  

Minority interest in income (loss) of subsidiaries

     587       (882 )     (7,174 )     (13,509 )     2,338  

Preferred dividends of subsidiary

     4,071       5,037       5,037       5,037       5,037  

Amortization of capitalized interest

     2,695       2,288       1,592       852       578  

Loss (income) from unconsolidated equity investees

     770       663       948       33,767       (1,035 )

Add fixed charges (see below)

     453,559       419,448       454,461       299,343       273,341  

Less amounts included in fixed charges:

                                        

Capitalized interest

     (3,065 )     (3,432 )     (15,934 )     (12,628 )     (9,417 )

Preference security dividend requirements of consolidated subsidiary (Note 1)

     (7,284 )     (7,967 )     (8,233 )     (8,284 )     (7,738 )
    


 


 


 


 


Total Earnings (as defined)

   $ 591,249     $ 624,556     $ (79,808 )   $ (474,283 )   $ 976,769  
    


 


 


 


 


Fixed charges:

                                        

Interest expensed and capitalized

   $ 440,787     $ 404,505     $ (439,482 )   $ (280,298 )   $ 257,778  

Estimated interest component of rental expense

     5,488       6,976       6,746       10,761       7,825  

Preference security dividend requirements of consolidated subsidiary (Note 1)

     7,284       7,967       8,233       8,284       7,738  
    


 


 


 


 


Total Fixed Charges (as defined)

   $ 453,559     $ 419,448     $ 454,461     $ 299,343     $ 273,341  
    


 


 


 


 


Ratio of Earnings to Fixed Charges

     1.30x       1.49x       (Note 2 )     (Note 2 )     3.57x  
    


 


 


 


 



Notes:

1   The preference security dividend requirement represents the amount of pre-tax earnings required to pay the dividends on outstanding preference securities of a subsidiary held by non-affiliates.
2   For the years ended December 31, 2003 and 2002, there are deficiencies of earnings to cover fixed charges of $534,269 and $773,626, respectively.