EX-12.C 5 ppl-6302017_ex12c.htm EXHIBIT 12.C
Exhibit 12(c)
LG&E AND KU ENERGY LLC AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)

| Six Months Ended June 30, |  | Years Ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings, as defined: |  |  |  |  |  |  |  |  |  |  |
Income from Continuing Operations Before Income Taxes | $ | 306 |  |  | $ | 686 |  |  | $ | 603 |  |  | $ | 553 |  |  | $ | 551 |  |  | $ | 331 |
Adjustment to reflect earnings from equity method investments on a cash basis (a) | 1 |  |  | (1 | ) |  | (1 | ) |  | (1 | ) |  | (1 | ) |  | 33 |
| 307 |  |  | 685 |  |  | 602 |  |  | 552 |  |  | 550 |  |  | 364 |
Total fixed charges as below | 112 |  |  | 223 |  |  | 189 |  |  | 173 |  |  | 151 |  |  | 157 |
Total earnings | $ | 419 |  |  | $ | 908 |  |  | $ | 791 |  |  | $ | 725 |  |  | $ | 701 |  |  | $ | 521 |
Fixed charges, as defined: |  |  |  |  |  |  |  |  |  |  |
Interest charges (b) (c) | $ | 107 |  |  | $ | 214 |  |  | $ | 181 |  |  | $ | 167 |  |  | $ | 145 |  |  | $ | 151 |
Estimated interest component of operating rentals | 5 |  |  | 9 |  |  | 8 |  |  | 6 |  |  | 6 |  |  | 6 |
Total fixed charges | $ | 112 |  |  | $ | 223 |  |  | $ | 189 |  |  | $ | 173 |  |  | $ | 151 |  |  | $ | 157 |
Ratio of earnings to fixed charges | 3.7 |  |  | 4.1 |  |  | 4.2 |  |  | 4.2 |  |  | 4.6 |  |  | 3.3 |

(a) |  | Includes other-than-temporary impairment loss of $25 million in 2012.
(b) |  | Includes interest on long-term and short-term debt, as well as amortization of loss on reacquired debt and amortization of debt discount, expense and premium - net.
(c) |  | Includes a credit for amortization of a fair market value adjustment of $7 million in 2013.