EX-12.REI 15 h85068ex12-rei.txt COMPUTATION OF RATIOS - RELIANT ENERGY, INC. 1 EXHIBIT 12 RELIANT ENERGY, INCORPORATED AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (THOUSANDS OF DOLLARS)
YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------- 2000 1999 1998 1997 1996 ----------- ----------- ----------- ----------- ----------- Income from continuing operations ................ $ 771,136 $ 1,674,523 $ (278,368) $ 389,862 $ 408,284 Income taxes for continuing operations ........... 377,064 915,973 (82,563) 214,188 208,328 Capitalized interest ............................. (44,565) (18,942) (6,023) (2,872) (2,598) ----------- ----------- ----------- ----------- ----------- 1,103,635 2,571,554 (366,954) 601,178 614,014 ----------- ----------- ----------- ----------- ----------- Fixed charges, as defined: Interest ...................................... 700,083 498,451 502,432 384,928 299,832 Capitalized interest .......................... 44,565 18,942 6,023 2,872 2,598 Distribution on trust preferred securities .... 54,358 51,220 29,201 26,230 -- Preference security dividend requirements of subsidiary ............................... -- -- -- 3,495 34,070 Interest component of rentals charged to operating expense ........................... 20,580 11,777 8,707 5,069 401 ----------- ----------- ----------- ----------- ----------- Total fixed charges ........................... 819,586 580,390 546,363 422,594 336,901 ----------- ----------- ----------- ----------- ----------- Earnings, as defined ............................. $ 1,923,221 $ 3,151,944 $ 179,409 $ 1,023,772 $ 950,915 =========== =========== =========== =========== =========== Ratio of earnings to fixed charges ............... 2.35 5.43 -- 2.42 2.82 =========== =========== =========== =========== ===========
In 1998 earnings were inadequate to cover fixed charges by $367 million. This deficiency results from the pre-tax $1.2 billion non-cash, unrealized accounting loss recorded for our indexed debt securities obligation. Excluding the effect of the non-cash, unrealized accounting loss, the ratio of earnings from continuing operations to fixed charges would have been 2.48.