Exhibit 12.3
BGE
Ratio of Earnings to Combined Fixed Charges
Quarter Ended March 31, 2012 | ||||
Pre-tax income from continuing operations | (46 | ) | ||
Less: Capitalized interest | (1 | ) | ||
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Pre-tax income from continuing operations after adjustment for capitalized interest | (47 | ) | ||
Fixed charges: | ||||
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness (c) | 42 | |||
Interest component of rental expense (a) | 1 | |||
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Total fixed charges | 43 | |||
Pre-tax income from continuing operations after adjustment for capitalized interest and plus fixed charges | (4 | ) | ||
Ratio of earnings to combined fixed charges | (b) |
(a) | Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |
(b) | Due to the registrant’s loss for the quarter ended March 31, 2012, the ratio coverage was less than 1:1. The registrant must generate additional earnings of $46 million to achieve a coverage ratio of 1:1. |
(c) | Includes interest expense of $1 million for the quarter ended March 31, 2012, related to uncertain tax positions. |
BGE
Ratio of Earnings to Combined Fixed Charges and Preference Stock Dividends
Quarter Ended March 31, 2012 | ||||
Pre-tax income from continuing operations | (46 | ) | ||
Less: Capitalized interest | (1 | ) | ||
Preference security dividend requirements | (5 | ) | ||
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Pre-tax income from continuing operations after adjustment for capitalized interest and preference security dividend requirements | (52 | ) | ||
Fixed charges: | ||||
Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness (c) | 42 | |||
Interest component of rental expense (a) | 1 | |||
Preference security dividend requirements | 5 | |||
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Total fixed charges | 48 | |||
Pre-tax income from continuing operations after adjustment for capitalized interest and preference security dividend requirements plus fixed charges | (4 | ) | ||
Ratio of earnings to combined fixed charges and preference stock dividends | (b) |
(a) | Represents one-third of rental expense relating to operating leases, which is a reasonable approximation of the interest factor. |
(b) | Due to the registrant’s loss for the quarter ended March 31, 2012, the ratio coverage was less than 1:1. The registrant must generate additional earnings of $50 million to achieve a coverage ratio of 1:1. |
(c) | Includes interest expense of $1 million for the quarter ended March 31, 2012, related to uncertain tax positions. |