EX-12 2 fe-09302017xex12.htm EXHIBIT 12
EXHIBIT 12
FIRSTENERGY CORP.
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

|  | For the Nine Months Ended September 30 |  | For the Year Ended December 31
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
(In millions) |  |
EARNINGS AS DEFINED IN REGULATION S-K: |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) |  | $ | 775 |  |  | $ | (6,177 | ) |  | $ | 578 |  |  | $ | 213 |  |  | $ | 375 |  |  | $ | 755 |
Interest and other charges, before reduction for amounts capitalized and deferred |  | 882 |  |  | 1,157 |  |  | 1,132 |  |  | 1,073 |  |  | 1,016 |  |  | 1,001 |
Capitalized interest |  | (34 | ) |  | (66 | ) |  | (68 | ) |  | (69 | ) |  | (75 | ) |  | (72 | )
Provision for income taxes (benefits) |  | 482 |  |  | (3,055 | ) |  | 315 |  |  | (42 | ) |  | 195 |  |  | 545 |
Interest element of rentals charged to income(1) |  | 57 |  |  | 89 |  |  | 78 |  |  | 83 |  |  | 96 |  |  | 136 |
Earnings as defined |  | $ | 2,162 |  |  | $ | (8,052 | ) |  | $ | 2,035 |  |  | $ | 1,258 |  |  | $ | 1,607 |  |  | $ | 2,365 |
FIXED CHARGES AS DEFINED IN REGULATION S-K: |  |  |  |  |  |  |  |  |  |  |  |
Interest before reduction for amounts capitalized and deferred |  | $ | 882 |  |  | $ | 1,157 |  |  | $ | 1,132 |  |  | $ | 1,073 |  |  | $ | 1,016 |  |  | $ | 1,001 |
Interest element of rentals charged to income(1) |  | 57 |  |  | 89 |  |  | 78 |  |  | 83 |  |  | 96 |  |  | 136 |
Fixed charges as defined |  | $ | 939 |  |  | $ | 1,246 |  |  | $ | 1,210 |  |  | $ | 1,156 |  |  | $ | 1,112 |  |  | $ | 1,137 |
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES |  | 2.30 |  |  | N/A(2) |  |  | 1.68 |  |  | 1.09 |  |  | 1.45 |  |  | 2.08 |

(1) | Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.

(2) | The ratio of earnings to fixed charges was negative for the year ended December 31, 2016, resulting from pre-tax impairment charges of $10,665 million. Additional earnings of $9,298 million would be required to have a one-to-one ratio of earnings to fixed charges.

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