EX-12 2 ex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES ex12.htm
Exhibit 12

CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(An Indirect Wholly Owned Subsidiary of CenterPoint Energy, Inc.)

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(millions of dollars)

   
Year Ended December 31,
  
   
      2004
    
      2005
    
      2006
    
       2007 (1)
    
       2008 (1)
  
                               
 Net Income
   $ 144     $ 193     $ 207     $ 287     $ 343  
 Income taxes
     87       116       116       173       228  
 Capitalized interest
     (2 )     (1 )     (6 )     (12 )     (14 )
      229       308       317       448       557  
                                         
 Fixed charges, as defined:
                                        
                                         
Interest expense
     178       176       167       187       213  
Capitalized interest
     2       1       6       12       14  
Interest component of rentals charged
        to operating expense
     10       11       17       14       13  
Total fixed charges
     190       188       190       213       240  
                                         
 Earnings, as defined
   $ 419     $ 496     $ 507     $ 661     $ 797  
                                         
 Ratio of earnings to fixed charges
     2.20       2.64       2.67       3.10       3.32  
________
 
(1)
Excluded from the computation of fixed charges for the years ended December 31, 2007 and 2008 is interest income of $2 million and $1 million, respectively, which is included in income tax expense.