EXHIBIT 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

	Year Ended December 31,
	2002		2001		2000		1999		1998
	(dollars in millions)
Earnings as defined for fixed charges calculation
Add:
Pretax income from continuing operations(a)	$	1,540	$	3,303	$	3,000	$	1,331	$	2,055
Fixed charges		1,488		1,128		1,123		757		599
Distributed income of equity investees		369		156		138		111		94
Deduct:
Preference security dividend requirements of consolidated subsidiaries		142		170		126		87		44
Interest capitalized(b)		193		139		54		37		15
Total earnings	$	3,062	$	4,278	$	4,081	$	2,075	$	2,689
Fixed charges:
Interest on debt, including capitalized portions	$	1,302	$	924	$	970	$	644	$	533
Estimate of interest within rental expense		44		34		27		26		22
Preference security dividend requirements of consolidated subsidiaries		142		170		126		87		44
Total fixed charges	$	1,488	$	1,128	$	1,123	$	757	$	599
Ratio of earnings to fixed charges		2.1		3.8		3.6		2.7		4.5

(a) Excludes minority interest expenses and income or loss from equity investees

(b) Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Income