TALEN ENERGY SUPPLY, LLC - FORM 10-Q - EX-12 - EXHIBIT 12 - May 7, 2015

Attached files

file filename
10-Q - 10-Q - TALEN ENERGY SUPPLY, LLCpples-2015331x10q.htm
EX-32 - EXHIBIT 32 - TALEN ENERGY SUPPLY, LLCpples-2015331xexx32.htm
EX-31.A - EXHIBIT 31.A - TALEN ENERGY SUPPLY, LLCpples-2015331xexx31a.htm
EX-31.B - EXHIBIT 31.B - TALEN ENERGY SUPPLY, LLCpples-2015331xexx31b.htm
EXCEL - IDEA: XBRL DOCUMENT - TALEN ENERGY SUPPLY, LLCFinancial_Report.xls


Exhibit 12
PPL ENERGY SUPPLY, LLC AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)

 
Three Months
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ended
March 31, 2015
 
Years Ended December 31,
 
 
2014 (a)
 
2013 (a)
 
2012 (a)
 
2011 (a)
 
2010 (a)
Earnings, as defined:
 
 
 
 
 
 
 
 
 
 
 
    Income (Loss) from Continuing Operations
       Before Income Taxes (b)
$
149

 
$
303

 
$
(420
)
 
$
665

 
$
1,061

 
$
860

    Adjustments to reflect earnings from equity
       method investments on a cash basis
—

 
—

 
—

 
—

 
1

 
7

 
149

 
303

 
(420
)
 
665

 
1,062

 
867

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
41

 
161

 
226

 
238

 
259

 
426

    Less:
 
 
 
 
 
 
 
 
 
 
 
    Capitalized interest
4

 
22

 
35

 
37

 
38

 
27

    Interest expense and fixed charges related to
       discontinued operations
—

 
10

 
14

 
12

 
6

 
169

Total fixed charges included in Income (Loss) from
  Continuing Operations Before Income Taxes
37

 
129

 
177

 
189

 
215

 
230

 
 
 
 
 
 
 
 
 
 
 
 
    Total earnings
$
186

 
$
432

 
$
(243
)
 
$
854

 
$
1,277

 
$
1,097

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
 
    Interest charges (c)
$
40

 
$
156

 
$
207

 
$
214

 
$
223

 
$
387

    Estimated interest component of operating rentals
1

 
5

 
19

 
24

 
36

 
38

    Fixed charges of majority-owned share of 50% or
       less-owned persons
—

 
—

 
—

 
—

 
—

 
1

 
 
 
 
 
 
 
 
 
 
 
 
          Total fixed charges (d)
$
41

 
$
161

 
$
226

 
$
238

 
$
259

 
$
426

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (b)
4.5

 
2.7

 
(1.1
)
 
3.6

 
4.9

 
2.6

 
 
 
 
 
 
 
 
 
 
 
 

(a)
 
Years 2010 through 2014 reflect the reclassification of certain PPL Montana hydroelectric generating facilities and related assets as Discontinued Operations. See Note 5 to the Financial Statements for additional information.
(b)
 
To facilitate the sale of the hydroelectric generating facilities referred to in (a) above, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge. See Note 8 to the Financial Statements in PPL Energy Supply's 2014 Form 10-K for additional information. As a result of these transactions, earnings were lower, which resulted in less than one-to-one coverage. The adjusted amount of the deficiency, or the amount of fixed charges in excess of earnings, was $469 million.
(c)
 
Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
(d)
 
Interest on unrecognized tax benefits is not included in fixed charges.


57