EX-12.(A) 90 dex12a.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12 (a)

ENERGY FUTURE COMPETITIVE HOLDINGS COMPANY.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES,

AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS

 

     Successor           Predecessor
     Period from
October 11, 2007
through
December 31, 2007		           Period from
January 1, 2007
through
October 10, 2007		    Year Ended December 31,
             2006    2005    2004    2003

EARNINGS:

                      

Income (loss) from continuing operations before extraordinary gain/(loss) and cumulative effect of changes in accounting principles

    $ (1,266 )        $ 1,306    $ 2,501    $ 1,816    $ 672    $ 736

Add: Total federal income tax expense (benefit)

      (675 )          618      1,306      882      282      348

Fixed charges (see detail below)

      717            393      387      668      651      665

Preferred dividends of subsidiaries

      —              —        —        —        —        —  
                                               

Total earnings (loss)

    $ (1,224 )        $ 2,317    $ 4,194    $ 3,366    $ 1,605    $ 1,749
                                               

FIXED CHARGES:

                      

Interest expense

    $ 711          $ 369    $ 364    $ 633    $ 607    $ 616

Rentals representative of the interest factor

      6            24      23      35      44      49
                                               

Fixed charges deducted from earnings

      717            393      387      668      651      665

Preferred dividends of subsidiaries (pretax) (a)

      —              —        —        —        —        —  
                                               

Total fixed charges

      717            393      387      668         665

Preference dividends of registrant (pretax) (a)

      —              —        —        4      3      7
                                               

Fixed charges and preference dividends

    $ 717          $ 393    $ 387    $ 672    $ 654    $ 672
                                               

RATIO OF EARNINGS TO FIXED CHARGES (b)

      —              5.90      10.84      5.04      2.47      2.63
                                               

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (b)

      —              5.90      10.84      5.01      2.45      2.60
                                               

 

     Successor           Predecessor
     Six Months
Ended
June 30, 2008		           Six Months
Ended
June 30, 2007

EARNINGS:

          

Income (loss) from continuing operations before extraordinary gain/(loss) and cumulative effect of changes in accounting principles

    $ (4,528 )        $ 232

Add: Total federal income tax expense (benefit)

      (2,480 )          47

Fixed charges (see detail below)

      1,469            233
                   

Total earnings (loss)

    $ (5,539 )        $ 512
                   

FIXED CHARGES:

          

Interest expense

    $ 1,456          $ 221

Rentals representative of the interest factor

      13            12
                   

Fixed charges deducted from earnings

      1,469            233

Preferred dividends of subsidiaries (pretax) (a)

      —              —  
                   

Total fixed charges

      1,469            233

Preference dividends of registrant (pretax) (a)

      —              —  
                   

Fixed charges and preference dividends

    $ 1,469          $ 233
                   

RATIO OF EARNINGS TO FIXED CHARGES (b)

      —              2.20
                   

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (b)

      —              2.20
                   

 

(a) Preferred/preference dividends multiplied by the ratio of pretax income to net income.

 

(b) For the period from October 11, 2007 through December 31, 2007, fixed charges and combined fixed charges and preference dividends exceeded earnings by $1.941 billion. For the six months ended June 30, 2008, fixed charges and combined fixed charges and preference dividends exceeded earnings by $7.008 billion.