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)

   
Nine Months Ended September 30,
  
   
2010 (1)
    
2011 (1)
  
             
Net Income
   $ 181     $ 223  
Equity in earnings of unconsolidated affiliates, net of distributions
     4       3  
Income taxes
     145       143  
Capitalized interest
     (4 )     (2 )
      326       367  
                 
Fixed charges, as defined:
                
                 
Interest
     155       142  
Capitalized interest
     4       2  
Interest component of rentals charged to operating expense
     19       11  
Total fixed charges
     178       155  
                 
Earnings, as defined
   $ 504     $ 522  
                 
Ratio of earnings to fixed charges
     2.83       3.37  
      
 
(1)
Excluded from the computation of fixed charges for both the nine months ended September 30, 2010 and 2011 is interest expense of less than $1 million, which is included in income tax expense.