Exhibit 12
E'TOWN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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EARNINGS:
Net income $ 4,328 $ 5,757 $ 6,589 $ 12,057
Federal income taxes 2,432 3,164 3,740 6,620
Interest charges 5,939 4,802 11,636 9,284
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Earnings available to cover
fixed charges $ 12,699 $ 13,723 $ 21,965 $ 27,961
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FIXED CHARGES:
Interest on long-term debt $ 4,785 $ 4,239 $ 9,223 $ 8,373
Other interest 1,144 565 2,384 856
Amortization of debt discount - net 115 110 229 220
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Total fixed charges $ 6,044 $ 4,914 $ 11,836 $ 9,449
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Ratio of Earnings to Fixed Charges 2.10 2.79 1.86 2.96
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Earnings to Fixed Charges represents the sum of Net Income,
Federal income taxes and Interest Charges (which is reduced by
Capitalized interest), divided by Fixed Charges.
Fixed Charges consist of interest on long and short-term debt (which is not
reduced by Capitalized Interest), and Amortization of debt discount.
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Exhibit 12(a)
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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EARNINGS:
Net income $ 5,654 $ 6,343 $ 9,048 $ 10,626
Federal income taxes 2,996 3,369 4,777 5,630
Interest charges 4,820 4,163 9,513 8,028
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Earnings available to cover
fixed charges $ 13,470 $ 13,875 $ 23,338 $ 24,284
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FIXED CHARGES:
Interest on long-term debt $ 3,858 $ 3,862 $ 7,634 $ 7,619
Other interest 968 315 1,881 378
Amortization of debt discount - net 99 98 198 196
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Total fixed charges $ 4,925 $ 4,275 $ 9,713 $ 8,193
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Ratio of Earnings to Fixed Charges 2.74 3.25 2.40 2.96
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Earnings to Fixed Charges represents the sum of Net Income,
Dividends, Federal income taxes and Interest Charges (which is reduced by
Allowance for Debt Funds Used During Construction), divided by Fixed Charges.
Fixed Charges consist of interest on long and short-term debt (which is not
reduced by Allowance for Debt Funds Used During Construction), and
Amortization of debt discount.
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Exhibit 12(b)
ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
(In Thousands Except Ratios)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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EARNINGS:
Net income $ 5,654 $ 6,343 $ 9,048 $ 10,626
Federal income taxes 2,996 3,369 4,777 5,630
Interest charges 4,820 4,163 9,513 8,028
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Earnings available to cover
fixed charges $ 13,470 $ 13,875 $ 23,338 $ 24,284
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FIXED CHARGES AND PREFERRED DIVIDENDS:
Interest on long-term debt $ 3,858 $ 3,862 $ 7,634 $ 7,619
Preferred dividend requirement (1) 311 311 620 621
Other interest 968 315 1,881 378
Amortization of debt discount - net 99 98 198 196
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Total fixed charges $ 5,236 $ 4,586 $ 10,333 $ 8,814
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Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.57 3.03 2.26 2.76
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(1) Preferred Dividend Requirement:
Preferred dividends $ 203 $ 203 $ 406 $ 406
Effective tax rate 34.64% 34.69% 34.55% 34.63%
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Preferred dividend requirement $ 311 $ 311 $ 620 $ 621
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Earnings to Fixed Charges and Preferred Dividends represents the sum of
Net Income, Federal income taxes and Interest
Charges (which is reduced by Allowance for Debt Funds Used During
Construction), divided by Fixed Charges. Fixed Charges and Preferred
Dividends consist of interest on long and short-term debt (which is not
reduced by Allowance for Debt Funds Used During Construction), dividends
on Preferred Stock on a pretax basis and Amortization of debt discount.
