EXHIBIT 12

 

LOUISVILLE GAS AND ELECTRICCOMPANY AND SUBSIDIARY

COMPUTATION OF RATIO OF EARNINGSTO FIXED CHARGES

(Thousands of $)

 

 

 

 
|                                                   |   | **2002** |   | **2001** |   | **2000** |   | **1999** |    | **1998** |   |
|--------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|---------|----------|--------|
|                                                   |   |     |   |     |   |     |   |     |    |     |   |
| Earnings:                                              |   |     |   |     |   |     |   |     |    |     |   |
| Net Income                                             |   | $        | 88,929 |     | $      | 106,781  |   | $        | 110,573 |     | $      | 106,270 |   | $ | 78,120 |   |
|                                                   |   |     |   |     |   |     |   |     |    |     |   |
| Add:                                                   |   |     |   |     |   |     |   |     |    |     |   |
| Federal income  taxes - current                        |   | 24,564   |   | 41,127   |   | 30,425   |   | 54,198   |    | 39,618   |   |
| State income  taxes - current                          |   | 7,653    |   | 8,185    |   | 4,450    |   | 13,650   |    | 10,164   |   |
| Deferred Federal  income taxes - net                   |   | 20,258   |   | 12,595   |   | 24,233   |   | (4,564   | )       | 2,167    |   |
| Deferred State  income taxes - net                     |   | 4,357    |   | 3,840    |   | 6,787    |   | (715     | )       | 636      |   |
| Investment tax  credit - net                           |   | (4,153   | )      | (4,290   | )      | (4,274   | )      | (4,289   | )       | (4,312   | )      |
| Fixed charges                                          |   | 30,128   |   | 38,234   |   | 44,707   |   | 39,323   |    | 37,571   |   |
| Earnings                                               |   | 171,736  |   | 208,472  |   | 216,901  |   | 203,873  |    | 163,964  |   |
|                                                   |   |     |   |     |   |     |   |     |    |     |   |
| Fixed Charges:                                         |   |     |   |     |   |     |   |     |    |     |   |
| Interest Charges  per statements of income             |   | 29,805   |   | 37,922   |   | 43,218   |   | 37,962   |    | 36,322   |   |
| Add:                                                   |   |     |   |     |   |     |   |     |    |     |   |
| One-third of  rentals charged to operating expense (1) |   | 323      |   | 312      |   | 1,489    |   | 1,361    |    | 1,249    |   |
| Fixed charges                                          |   | $        | 30,128 |     | $      | 38,234   |   | $        | 44,707  |     | $      | 39,323 |   | $ | 37,571 |   |
|                                                   |   |     |   |     |   |     |   |     |    |     |   |
| Ratio of  Earnings to Fixed Charges                    |   | 5.70     |   | 5.40     |   | 4.85     |   | 5.18     |    | 4.36     |   |

 

 

NOTE:

 

(1)          In the Company’sopinion, one-third of rentals represents a reasonable approximation of theinterest factor.

 

 

1

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EXHIBIT 12

 

KENTUCKYUTILITIES COMPANY AND SUBSIDIARY

COMPUTATIONOF RATIO OF EARNINGS TO FIXED CHARGES

(Thousandsof $)

 

 

 

 
|                                                                                               |   | **2002** |   | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
|----------------------------------------------------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
| Earnings:                                                                                          |   |     |   |     |   |     |   |     |   |     |   |
| Net Income  before cumulative effect of a change in accounting principle per statements  of income |   | $93,384  |   | $96,278  |   | $95,524  |   | $106,558 |   | $72,764  |   |
|                                                                                               |   |     |   |     |   |     |   |     |   |     |   |
| Add:                                                                                               |   |     |   |     |   |     |   |     |   |     |   |
| Federal income  taxes - current                                                                    |   | 37,839   |   | 57,389   |   | 45,276   |   | 51,997   |   | 45,704   |   |
| State income  taxes - current                                                                      |   | 10,509   |   | 13,197   |   | 9,400    |   | 13,513   |   | 10,008   |   |
| Deferred Federal  income taxes - net                                                               |   | 3,272    |   | (12,117  | )      | (3,376   | )      | (4,651   | )      | (2,492   | )      |
| Deferred State  income taxes - net                                                                 |   | 1,459    |   | (1,118   | )      | 927      |   | 887      |   | 54       |   |
| Investment tax  credit - net                                                                       |   | (2,955   | )      | (3,446   | )      | (3,674   | )      | (3,727   | )      | (3,829   | )      |
| Undistributed  income of Electric Energy, Inc.                                                     |   |     |   |     |   |     |   |     |   |     |   |
|                                                                                               | (5,382 | )        | 258    |     | 70     |     | 33     |     | 1      |     |
| Fixed charges                                                                                      |   | 25,823   |   | 34,202   |   | 40,254   |   | 39,486   |   | 39,318   |   |
| Earnings                                                                                           |   | 163,949  |   | 184,643  |   | 184,401  |   | 204,096  |   | 161,528  |   |
|                                                                                               |   |     |   |     |   |     |   |     |   |     |   |
| Fixed Charges:                                                                                     |   |     |   |     |   |     |   |     |   |     |   |
| Interest Charges                                                                                   |   | 25,727   |   | 34,043   |   | 39,484   |   | 38,904   |   | 38,660   |   |
| Add:                                                                                               |   |     |   |     |   |     |   |     |   |     |   |
| One-third of  rentals charged to operating expense (1)                                             |   | 96       |   | 159      |   | 770      |   | 582      |   | 658      |   |
| Fixed charges                                                                                      |   | $25,823  |   | $34,202  |   | $40,254  |   | $39,486  |   | $39,318  |   |
|                                                                                               |   |     |   |     |   |     |   |     |   |     |   |
| Ratio of  Earnings to Fixed Charges                                                                |   | 6.35     |   | 5.40     |   | 4.58     |   | 5.17     |   | 4.11     |   |

 

NOTE:

 

(1)          In theCompany's opinion, one-third of rentals represents a reasonable approximationof the interest factor.

 

 

2

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