Exhibit 12(a)
Kentucky Utilities Company
Ratio of Earnings to Fixed Charges
For the Periods as Shown
($ millions)
|
|
|
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| January |
| November |
| ||||||
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Income from continuing operations before income taxes |
|
|
| $ | 226 |
| $ | 244 |
| $ | 226 |
| $ | 200 |
| $ | 218 |
| $ | 55 |
|
Exclude amounts reflected in line above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Undistributed income of Electric Energy, Inc. |
|
|
| 2 |
| 5 |
| — |
| (11 | ) | 4 |
| — |
| ||||||
Mark to market impact of derivative instruments(1) |
|
|
| — |
| — |
| 1 |
| (1 | ) | — |
| — |
| ||||||
Add fixed charges (see below) |
|
|
| 41 |
| 59 |
| 77 |
| 79 |
| 71 |
| 11 |
| ||||||
Total Earnings |
| (A) |
| $ | 265 |
| $ | 298 |
| $ | 302 |
| $ | 291 |
| $ | 285 |
| $ | 66 |
|
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
|
|
| $ | 39 |
| $ | 57 |
| $ | 74 |
| $ | 76 |
| $ | 69 |
| $ | 10 |
|
Estimated interest component of rental expense(2) |
|
|
| 2 |
| 2 |
| 3 |
| 3 |
| 2 |
| 1 |
| ||||||
Preferred stock dividends |
|
|
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||
Total Fixed Charges |
| (B) |
| $ | 41 |
| $ | 59 |
| $ | 77 |
| $ | 79 |
| $ | 71 |
| $ | 11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Ratio of Earnings to Fixed Charges |
| (A) ÷ (B) |
| 6.46 |
| 5.05 |
| 3.92 |
| 3.68 |
| 4.01 |
| 6.00 |
|
(1) Represents non-cash unrealized gains or losses on derivative instruments recorded in the statements of income.
(2) Represents one-third of rentals charged to operating expense.