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Exhibit 12(b)
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
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<CAPTION>
12 Months
Ended 12 Months Ended
September 30, December 31,
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2000 1999 (c) 1998 (c) 1997 (c) 1996 (c)
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<S> <C> <C> <C> <C> <C>
Fixed charges, as defined:
Interest on long-term debt............................. $ 229 $ 205 $ 188 $ 195 $ 207
Interest on short-term debt and other interest......... 16 12 14 17 11
Amortization of debt discount, expense and premium
- net................................................ 4 3 2 2 2
Interest on capital lease obligations
Charged to expense.................................. 6 9 8 9 13
Capitalized......................................... 1 2 2 2
Estimated interest component of operating rentals...... 17 19 18 15 8
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Total fixed charges.......................... $ 272 $ 249 $ 232 $ 240 $ 243
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Earnings, as defined:
Net income (a)......................................... $ 366 $ 444 $ 409 $ 348 $ 357
Less undistributed income of equity method investment..
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366 444 409 348 357
Add (Deduct):
Income taxes........................................... 218 151 273 248 251
Amortization of capitalized interest on capital
leases............................................... 2 2 2 2 4
Total fixed charges as above (excluding capitalized
interest on capital lease obligations)............... 272 248 230 238 241
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Total earnings............................... $ 858 $ 845 $ 914 $ 836 $ 853
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Ratio of earnings to fixed charges (b) (c)................ 3.15 3.39 3.94 3.48 3.51
============= ========= ========= ========= =========
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(a) 2000, 1999 and 1998 net income excluding extraordinary items.
(b) Based on earnings excluding one-time adjustments, the ratio of earnings to
fixed charges are: September 2000, 2.79; 1999, 3.10; and 1998, 3.53
(c) Ratio of earnings to fixed charges for years 1999 and prior were
recalculated to give proper effect of undistributed earnings of equity
method investments.
