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


CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

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

   
                     Nine Months Ended September 30,
  
   
2009 (1)
    
2010 (1)
  
             
Net Income
   $ 267     $ 318  
Equity in earnings of unconsolidated affiliates, net of distributions        (4 )       4  
Income taxes
     129       223  
Capitalized interest
     (5 )     (5 )
      387       540  
                 
Fixed charges, as defined:
                
                 
Interest
     482       470  
Capitalized interest
     5       5  
Interest component of rentals charged to operating expense
     8       20  
Total fixed charges
     495       495  
                 
Earnings, as defined
   $  882     $  1,035  
                 
Ratio of earnings to fixed charges
     1.78       2.09  
        
(1)
Excluded from the computation of fixed charges for the nine months ended September 30, 2009 and 2010 is interest income of $3 million and interest expense of $6 million, respectively, which is included in income tax expense.