EX-12 2 cehe_exhibit12x12312011.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES CEHE_Exhibit 12_12.31.2011


Exhibit 12

CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)

 
Year Ended December 31,
 
2007 (1)
 
2008 (1)
 
2009 (1)
 
2010 (1)
 
2011 (1)
Income before extraordinary item
$
273

 
$
222

 
$
208

 
$
200

 
$
488

Income taxes
126

 
121

 
102

 
116

 
248

Capitalized interest
(10
)
 
(7
)
 
(3
)
 
(3
)
 
(4
)
 
389

 
336

 
307

 
313

 
732

Fixed charges, as defined:
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
Interest
230

 
245

 
289

 
289

 
277

Capitalized interest
10

 
7

 
3

 
3

 
4

Interest component of rentals charged to operating expense
1

 
2

 
─

 
─

 
─

Total fixed charges
241

 
254

 
292

 
292

 
281

 
 
 
 
 
 
 
 
 
 
Earnings, as defined
$
630

 
$
590

 
$
599

 
$
605

 
$
1,013

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.61

 
2.32

 
2.05

 
2.07

 
3.60

  ____________
(1)
Excluded from the computation of fixed charges for the years ended December 31, 2007, 2008, 2009 and 2010 is interest expense of $4 million, $7 million, $1 million and $8 million, respectively, and interest income for 2011 of $12 million which is included in income tax expense.