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Exhibit 12.1

WGL HOLDINGS, INC. AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

 

		Twelve Months Ended September 30,
($ in thousands)		2017				2016				2015				2014				2013
EARNINGS:
Pre-Tax Net Income(a)		$	268,806			$	252,632			$	210,915			$	161,320			$	132,355
Add:
Distributed Income (Loss) of Equity Investees		20,161				13,806				5,468				3,194				1,510
Total Fixed Charges		79,856				55,225				53,471				39,484				37,893
Less: Capitalized Interest(b)		(2,909		)		—				—				—				—
Total Earnings		$	365,914			$	321,663			$	269,854			$	203,998			$	171,758
FIXED CHARGES:
Interest expensed and capitalized		$	74,739			$	51,809			$	50,450			$	36,383			$	34,512
Other Interest (excluding AFUDC)		1,250				298				658				918				905
Amortization of Debt Premium, Discount and Expense		974				303				373				345				337
One-third of Rental Expense(c)		2,893				2,815				1,990				1,838				2,139
Total Fixed Charges		$	79,856			$	55,225			$	53,471			$	39,484			$	37,893
Ratio of Earnings to Fixed Charges		4.6				5.8				5.0				5.2				4.5
FIXED CHARGES AND PRE-TAX PREFERRED STOCK DIVIDENDS:
Pre-Tax Preferred Dividend Requirement		$	1,320			$	1,320			$	1,320			$	1,320			$	1,320
Effective Income Tax Rate		0.3846				0.3681				0.3871				0.3480				0.3906
Complement of Effective Income Tax Rate (1-Tax Rate)		0.6154				0.6319				0.6129				0.6520				0.6094
Preferred Dividend Requirement		$	2,145			$	2,089			$	2,154			$	2,025			$	2,166
Combined Fixed Charges and Preferred Dividends		$	82,001			$	57,314			$	55,625			$	41,509			$	40,059
Ratio of Earnings to Fixed Charges and Preferred Dividends		4.5				5.6				4.9				4.9				4.3

^(a) Excludes amounts attributable to income or loss from equity investees and non-controlling interests.

^(b) Capitalized interest amounts attributable to 2016 and 2015 were $2.1 million and $1.1 million respectively. There was no capitalized interest for 2014 and 2013.

^(c) Management believes one-third of the total rental expense gives a reasonable estimate of total interest on rentals.