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.

	Year Ended December 31,
	2007		2006		2005		2004		2003
	(dollars in millions)
Earnings as defined for fixed charges calculation
Add:
Pre-tax income from continuing operations(a)	$	1,014	$	890	$	980	$	910	$	783
Fixed charges		329		502		1,159		1,433		1,620
Distributed income of equity investees		—		215		473		140		263
Deduct:
Preference security dividend requirements of consolidated subsidiaries		—		7		27		31		139
Interest capitalized(b)		22		18		23		18		58
Total earnings (as defined for the Fixed Charges calculation)	$	1,321	$	1,582	$	2,562	$	2,434	$	2,469
Fixed charges:
Interest on debt, including capitalized portions	$	314	$	481	$	1,096	$	1,365	$	1,441
Estimate of interest within rental expense		15		14		36		37		40
Preference security dividend requirements of consolidated subsidiaries		—		7		27		31		139
Total fixed charges	$	329	$	502	$	1,159	$	1,433	$	1,620
Ratio of earnings to fixed charges		4.0		3.2		2.2		1.7		1.5

(a) Excludes minority interest expense 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 Operations.