EX-12 6 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12

 

Dominion Resources Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(millions of dollars)

 

    

Years Ended

    

2002

   

2001 (a)

   

2000 (b)

   

1999

   

1998

Earnings, as defined:

                                   

Earnings before income taxes and minority interests in consolidated subsidiaries

   

$

2,043.2

   

$

914.0

   

$

600.0

   

$

829.0

   

$

887.0

Distributed income from unconsolidated investees, less equity in earnings

   

 

23.6

   

 

33.0

   

 

6.3

              

Fixed charges included in the determination of net income

   

 

975.2

   

 

1,025.8

   

 

1,041.7

   

 

583.0

   

 

656.1

    
  
  
  
  

Total earnings, as defined

   

$

3,042.0

   

$

1,972.8

   

$

1,648.0

   

$

1,412.0

   

$

1,543.1

    
  
  
  
  

Fixed charges, as defined:

                                   

Interest charges

   

$

1,051.2

   

$

1,063.6

   

$

1,039.3

   

$

591.8

   

$

669.5

Rental interest factor

   

 

26.7

   

 

18.8

   

 

18.2

   

 

8.0

   

 

6.0

    
  
  
  
  

Total fixed charges, as defined

   

$

1,077.9

   

$

1,082.4

   

$

1,057.5

   

$

599.8

   

$

675.5

    
  
  
  
  

Ratio of Earnings to Fixed Charges

   

 

2.82

   

 

1.82

   

 

1.56

   

 

2.35

   

 

2.28

 

(a) Earnings for the twelve months ended December 31, 2001 includes a one-time $220 million charge related to the buyout of power purchase contracts and non-utility generating plants previously serving the company under long-term contracts, a one-time $40 million charge associated with the divestiture of Saxon Capital, Inc., a $281 million charge from a write-down of Dominion Capital assets, a $151 million charge associated with Dominion’s estimated Enron exposure, and $105 million in restructuring charges associated with a senior management restructuring initiative announced in November and other restructuring costs. Excluding these items from the calculation above results in a ratio of earnings to fixed charges for the twelve months ended December 31, 2001 of 2.56x.

 

(b) Earnings for the twelve months ended December 31, 2000 includes $579 million in restructuring and other acquisition-related costs resulting from the CNG acquisition and a write-down at Dominion Capital, Inc. Dominion is required to divest its financial services business as a result of the acquisition of CNG. Excluding these items from the calculation above results in a ratio of earnings to fixed charges for the twelve months ended December 31, 2000 of 2.10x.