EX-12 3 exhibit12.txt EXHIBIT12
Exhibit 12 TXU GAS COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES, AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS Year Ended December 31, ----------------------------------------------------------------- 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- Millions of Dollars, Except Ratios EARNINGS: Income (loss) from continuing operations.. $ 11 $ 1 $ 66 $ 8 $ (29) Add: Total federal income taxes (benefit). 6 7 40 (2) (6) Fixed charges (see detail below)........ 65 67 74 76 73 ----- ----- ----- ----- ----- Total earnings........................ $ 82 $ 75 $ 180 $ 82 $ 38 ===== ===== ===== ===== ===== FIXED CHARGES: Interest expense.......................... $ 53 $ 55 $ 62 $ 65 $ 68 Rentals representative of the interest factor................................... 2 2 2 1 -- Distributions on preferred trust securities of subsidiaries(a)............ 10 10 10 10 5 ----- ----- ----- ----- ----- Fixed charges deducted from earnings.. 65 67 74 76 73 ----- ----- ----- ----- ----- Preferred dividends of registrant (pretax)(b).............................. 6 32 6 3 5 ----- ----- ----- ----- ----- Fixed charges and preferred dividends. $ 71 $ 99 $ 80 $ 79 $ 78 ===== ===== ===== ===== ===== RATIO OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO FIXED CHARGES (c)......................... 1.26 1.12 2.43 1.08 0.52 ===== ===== ===== ===== ===== RATIO OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (d)............... 1.15 .76 2.25 1.04 0.49 ===== ===== ===== ===== =====
(a) Distributions of preferred trust securities are deductible for tax purposes. (b) Preferred dividends multiplied by the ratio of pre-tax income to net income. (c) In 1998, additional earnings of $35 million would have resulted in a ratio of 1.00. (d) In 2001 and 1998, additional earnings of $24 million and $40 million, respectively, would have resulted in ratios of 1.00.