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Exhibit 12
Conectiv
Ratio of Earnings to Fixed Charges
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(Dollars in Thousands)
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<CAPTION>
12 Months
Ended Year Ended December 31,
June 30, --------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------------- ------------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Income before extraordinary item $ 84,422 $113,578 $153,201 $101,218 $107,251 $107,546
------------- ------------- ----------- ----------- ---------- -----------
Income taxes 99,214 105,816 105,817 72,155 78,340 75,540
------------- ------------- ----------- ----------- ---------- -----------
Fixed charges:
Interest on long-term debt
including amortization of
discount, premium and
expense 162,793 149,732 133,796 78,350 69,329 65,572
Other interest 49,890 37,743 26,199 12,835 12,516 10,353
Preferred dividend require-
ments of subsidiaries 20,326 19,894 17,871 10,178 10,326 9,942
------------- ------------- ----------- ----------- ---------- -----------
Total fixed charges 233,009 207,369 177,866 101,363 92,171 85,867
------------- ------------- ----------- ----------- ---------- -----------
Nonutility capitalized interest (4,484) (3,264) (1,444) (208) (311) (304)
------------- ------------- ----------- ----------- ---------- -----------
Earnings before extraordinary
item, income taxes, and
fixed charges $412,161 $423,499 $435,440 $274,528 $277,451 $268,649
============= ============= =========== =========== ========== ===========
Total fixed charges shown above $ 233,009 $ 207,369 $ 177,866 $ 101,363 $ 92,171 $ 85,867
Increase preferred stock dividend
requirements of subsidiaries to
a pre-tax amount 7,197 6,123 4,901 3,065 6,025 6,243
Fixed charges for ratio ------------- ------------- ----------- ----------- ---------- -----------
computation $ 240,206 $ 213,492 $ 182,767 $ 104,428 $ 98,196 $ 92,110
============= ============= =========== =========== ========== ===========
Ratio of earnings to fixed charges 1.72 1.98 2.38 2.63 2.83 2.92
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For purposes of computing the ratio, earnings are income before extraordinary
item plus income taxes and fixed charges, less nonutility capitalized interest.
Fixed charges include gross interest expense, the estimated interest component
of rentals, and preferred stock dividend requirements of subsidiaries. Preferred
stock dividend requirements for purposes of computing the ratio have been
increased to an amount representing the pre-tax earnings which would be required
to cover such dividend requirements.
