EX-12 7 fe-12312017xex12.htm EXHIBIT 12
EXHIBIT 12
FIRSTENERGY CORP.
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31 |
|  | 2013 |  | 2014 |  | 2015 |  | 2016 (2) |  | 2017 (2) |
(in millions) |  |  |
EARNINGS AS DEFINED IN REGULATION S-K: |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations |  | $ | 375 |  |  | $ | 213 |  |  | $ | 578 |  |  | $ | (6,177 | ) |  | $ | (1,724 | ) |
Interest and other charges, before reduction for amounts capitalized and deferred |  | 1,016 |  |  | 1,073 |  |  | 1,132 |  |  | 1,157 |  |  | 1,178 |  |
Capitalized interest |  | (75 | ) |  | (69 | ) |  | (68 | ) |  | (66 | ) |  | (44 | ) |
Provision for income taxes (benefits) |  | 195 |  |  | (42 | ) |  | 315 |  |  | (3,055 | ) |  | 895 |  |
Interest element of rentals charged to income (1) |  | 96 |  |  | 83 |  |  | 78 |  |  | 89 |  |  | 76 |  |
Earnings as defined |  | $ | 1,607 |  |  | $ | 1,258 |  |  | $ | 2,035 |  |  | $ | (8,052 | ) |  | $ | 381 |  |
FIXED CHARGES AS DEFINED IN REGULATION S-K: |  |  |  |  |  |  |  |  |  |  |
Interest before reduction for amounts capitalized and deferred |  | $ | 1,016 |  |  | $ | 1,073 |  |  | $ | 1,132 |  |  | $ | 1,157 |  |  | $ | 1,178 |  |
Interest element of rentals charged to income (1) |  | 96 |  |  | 83 |  |  | 78 |  |  | 89 |  |  | 76 |  |
Fixed charges as defined |  | $ | 1,112 |  |  | $ | 1,156 |  |  | $ | 1,210 |  |  | $ | 1,246 |  |  | $ | 1,254 |  |
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES |  | 1.45 |  |  | 1.09 |  |  | 1.68 |  |  | N/A |  |  | N/A |  |

(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 less than one-to-one for the years ended December 31, 2017 and 2016 resulting from pre-tax impairment charges of $2,406 and $10,665 million, respectively. Additional earnings of $873 million and $9,298 million would be required to have a one-to-one ratio of earnings to fixed charges for years ended December 31, 2017 and 2016, respectively.

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