EX-12.7 9 exc-20171231x10kxexh127.htm POTOMAC ELECTRIC POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit
Exhibit 12.7


Potomac Electric Power Company
Ratio of Earnings to Fixed Charges
 
 
Years Ended December 31,
(In millions, except ratios)
 
2013
 
2014
 
2015
 
2016
 
2017
Pre-tax income from continuing operations
 
235

 
264

 
289

 
83

 
310

Less: Capitalized interest
 
(1
)
 
(2
)
 
(1
)
 
(10
)
 
(12
)
Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest
 
234

 
262

 
288

 
73

 
298

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness
 
114

 
121

 
130

 
137

 
131

Interest component of rental expense(a)
 
7

 
7

 
7

 
3

 
4

Total fixed charges
 
121

 
128

 
137

 
140

 
135

Pre-tax income from continuing operations after adjustment for income or loss from equity investees and capitalized interest plus fixed charges
 
355

 
390

 
425

 
213

 
433

Ratio of earnings to fixed charges
 
2.9

 
3.0

 
3.1

 
1.5

 
3.2

__________
(a)
Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor.