DUKE ENERGY CAROLINAS, LLC

Exhibit No. 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 ^(a).

	Year Ended December 31,
	2006		2005		2004		2003		2002
	(dollars in millions)
Earnings as defined for fixed charges calculation
Add:
Pretax income from continuing operations(b)	$	890	$	980	$	910	$	783	$	1,121
Fixed charges		502		1,159		1,433		1,620		1,550
Distributed income of equity investees		215		473		140		263		369
Deduct:
Preference security dividend requirements of consolidated subsidiaries		7		27		31		139		170
Interest capitalized(c)		18		23		18		58		193
Total earnings (as defined for the Fixed Charges calculation)	$	1,582	$	2,562	$	2,434	$	2,469	$	2,677
Fixed charges:
Interest on debt, including capitalized portions	$	481	$	1,096	$	1,365	$	1,441	$	1,340
Estimate of interest within rental expense		14		36		37		40		40
Preference security dividend requirements of consolidated subsidiaries		7		27		31		139		170
Total fixed charges	$	502	$	1,159	$	1,433	$	1,620	$	1,550
Ratio of earnings to fixed charges		3.2		2.2		1.7		1.5		1.7

(a) Certain prior year amounts above have been adjusted for businesses reclassified to discontinued operations during 2006 as a result of Duke Energy Carolinas’ transfer of all its membership interests in Spectra Energy Capital to Duke Energy on April 3, 2006.

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

(c) Excludes equity costs related to AFUDC that are included in Other Income and Expenses in the Consolidated Statements of Operations.