Duke Energy Carolinas, LLC - FORM 10-K - EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. - March 12, 2010

Attached files

file filename
10-K - FORM 10-K - Duke Energy Carolinas, LLCd10k.htm
EX-31.1 - SECTION 302 CEO CERTIFICATION - Duke Energy Carolinas, LLCdex311.htm
EX-31.2 - SECTION 302 CFO CERTIFICATION - Duke Energy Carolinas, LLCdex312.htm
EX-32.2 - SECTION 906 CFO CERTIFICATION - Duke Energy Carolinas, LLCdex322.htm
EX-32.1 - SECTION 906 CEO CERTIFICATION - Duke Energy Carolinas, LLCdex321.htm
EX-10.10 - AMENDED AND RESTATED ENGINEERING AND CONSTRUCTION AGREEMENT - Duke Energy Carolinas, LLCdex1010.htm
EX-23.1 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. - Duke Energy Carolinas, LLCdex231.htm

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

 

     Year Ended December 31,
     2009    2008    2007    2006    2005
     (dollars in millions)

Earnings as defined for fixed charges calculation

               

Add:

               

Pre-tax income from continuing operations(a)

    $ 1,080    $ 1,065    $ 1,014    $ 890    $ 980

Fixed charges

      412      402      329      502      1,159

Distributed income of equity investees

      —        —        —        215      473

Deduct:

               

Preference security dividend requirements of consolidated subsidiaries

      —        —        —        7      27

Interest capitalized(b)

      65      46      22      18      23
                                  

Total earnings (as defined for the Fixed Charges calculation)

    $ 1,427    $ 1,421    $ 1,321    $ 1,582    $ 2,562
                                  

Fixed charges:

               

Interest on debt, including capitalized portions

    $ 395    $ 376    $ 314    $ 481    $ 1,096

Estimate of interest within rental expense

      17      26      15      14      36

Preference security dividend requirements of consolidated subsidiaries

      —        —        —        7      27
                                  

Total fixed charges

    $ 412    $ 402    $ 329    $ 502    $ 1,159
                                  

Ratio of earnings to fixed charges

      3.5      3.5      4.0      3.2      2.2

 

(a) Excludes net income (loss) attributable to noncontrolling interests and income or loss from equity investees.
(b) Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Operations.