Exhibit 12
E'TOWN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(In Thousands Except Ratios)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
EARNINGS:
Net income $5,482 $7,953 $12,071 $20,010
Federal income taxes 3,042 4,348 6,782 10,968
Interest charges 5,910 4,803 17,546 13,920
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Earnings available to cover fixed charges 14,434 17,104 36,399 44,898
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FIXED CHARGES:
Interest on long-term debt 4,746 3,884 13,969 12,090
Other interest 1,184 901 3,568 1,757
Amortization of debt discount - net 117 111 346 331
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Total fixed charges $6,047 $4,896 $17,883 $14,178
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Ratio of Earnings to Fixed Charges 2.39 3.49 2.04 3.17
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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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
EARNINGS: --------------------------------
Net income $6,289 $7,880 $15,337 $18,506
Federal income taxes 3,338 4,201 8,115 9,831
Interest charges 4,512 4,021 14,025 11,882
--------------------------------
Earnings available to cover fixed charges 14,139 16,102 37,477 40,219
--------------------------------
FIXED CHARGES:
Interest on long-term debt 3,819 3,507 11,453 10,959
Other interest 729 490 2,610 868
Amortization of debt discount - net 101 99 299 295
--------------------------------
Total fixed charges $4,649 $4,096 $14,362 $12,122
--------------------------------
Ratio of Earnings to Fixed Charges 3.04 3.93 2.61 3.32
================================
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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
EARNINGS: --------------------------------
Net income $ 6,289 $ 7,880 $15,337 $18,506
Federal income taxes 3,338 4,201 8,115 9,831
Interest charges 4,512 4,021 14,025 11,882
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Earnings available to cover fixed charges $14,139 $16,102 $37,477 $40,219
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FIXED CHARGES AND PREFERRED DIVIDENDS:
Interest on long-term debt $ 3,819 $ 3,507 $11,453 $10,959
Preferred dividend requirement (1) 311 311 931 933
Other interest 729 490 2,610 868
Amortization of debt discount - net 101 99 299 295
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Total fixed charges $ 4,960 $ 4,407 $15,293 $13,055
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Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.85 3.65 2.45 3.08
===============================================================================
(1) Preferred Dividend Requirement:
Preferred dividends $ 203 $ 203 $ 609 $ 609
Effective tax rate 34.67% 34.78% 34.60% 34.69%
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Preferred dividend requirement $ 311 $ 311 $ 931 $ 931
===============================================================================
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.
