EX-12.1 5 dex121.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

Exhibit 12.1

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Three Months Ended
March 31,		     Years Ended December 31,  

(Dollar amounts in thousands)

    2009     2008     2008     2007     2006     2005     2004  

Earnings (Losses):

               

Income from continuing operations

    $ 133,925      $ 136,125      $ 395,447      $ 412,214      $ 318,735      $ 75,145      $ 129,732   

Exclude amounts reflected in line above:

               

Income tax expense

      100,906        58,293        203,966        250,805        173,543        64,771        79,669   

Noncontrolling interest

      172        206        443        3,121        2,562        587        (882 ) 

Preferred dividends of subsidiary

      —          —          —          700        1,172        4,071        5,037   

Amortization of capitalized interest

      624        591        2,413        1,923        1,644        2,695        2,288   

Loss (income) from unconsolidated equity investees

      (400 )      64        (1,795 )      (334 )      (325 )      770        663   

Add fixed charges (see below)

      70,220        67,899        273,823        216,835        286,769        453,559        419,448   

Less amounts included in fixed charges:

               

Capitalized interest

      (11,869 )      (8,235 )      (34,583 )      (20,028 )      (6,943 )      (3,065 )      (3,432 ) 

Preference security dividend requirements of consolidated subsidiary (a)

      —          —          —          (1,123 )      (1,739 )      (7,284 )      (7,967 ) 
                                                        

Total Earnings (Losses) (as defined)

    $ 293,578      $ 254,943      $ 839,714      $ 864,113      $ 775,418      $ 591,249      $ 624,556   
                                                        

Fixed charges:

               

Interest expensed and capitalized

    $ 69,148      $ 66,666      $ 269,368      $ 211,129      $ 280,483      $ 440,787      $ 404,505   

Estimated interest component of rental expense

      1,072        1,233        4,455        4,584        4,547        5,488        6,976   

Preference security dividend requirements of consolidated subsidiary (a)

      —          —          —          1,123        1,739        7,284        7,967   
                                                        

Total Fixed Charges (as defined)

    $ 70,220      $ 67,899      $ 273,823      $ 216,836      $ 286,769      $ 453,559      $ 419,448   
                                                        

Ratio of Earnings to Fixed Charges (b)

      4.18x        3.75x        3.07x        3.99x        2.70x        1.30x        1.49x   
                                                        

 

(a) The preference security dividend requirement represents the amount of pre-tax earnings required to pay the dividends on outstanding preference securities.
(b) The ratio of earnings to fixed charges excludes interest expense (benefit) on uncertain tax positions of $0.2 million and $(5.7) million for the three months ended March 31, 2009 and 2008, respectively and $(4.5) million and $0.5 million for the years ended December 31, 2008 and 2007, respectively, which was recorded as a component of income tax expense.