EX-12.B 9 ppl-12312017ex12b.htm EXHIBIT 12.B

Exhibit 12(b) |
PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
| Year |  | Year |  | Year |  | Year |  | Year
| Ended |  | Ended |  | Ended |  | Ended |  | Ended
| Dec. 31, |  | Dec. 31, |  | Dec. 31, |  | Dec. 31, |  | Dec. 31,
| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings, as defined: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income Before Income Taxes | $ | 575 |  |  | $ | 552 |  |  | $ | 416 |  |  | $ | 423 |  |  | $ | 317 |
Total fixed charges as below | 153 |  |  | 141 |  |  | 139 |  |  | 131 |  |  | 117 |
Total earnings | $ | 728 |  |  | $ | 693 |  |  | $ | 555 |  |  | $ | 554 |  |  | $ | 434 |
Fixed charges, as defined: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest charges (a) | $ | 149 |  |  | $ | 137 |  |  | $ | 135 |  |  | $ | 127 |  |  | $ | 113 |
Estimated interest component of operating rentals | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |
Total fixed charges (b) | $ | 153 |  |  | $ | 141 |  |  | $ | 139 |  |  | $ | 131 |  |  | $ | 117 |
Ratio of earnings to fixed charges (c) | 4.8 |  |  | 4.9 |  |  | 4.0 |  |  | 4.2 |  |  | 3.7 |

(a) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.

(b) | Interest on unrecognized tax benefits is not included in fixed charges.

(c) | PPL Electric does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.