EX-12 2 cehe_exhibit12x09302012.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES CEHE_Exhibit 12_09.30.2012


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)

 
Nine Months Ended
September 30,
 
2011 (1)
 
2012 (1)
Income before extraordinary item
$
470

 
$
252

Income taxes
233

 
98

Capitalized interest
(3
)
 
(5
)
 
700

 
345

Fixed charges, as defined:
 

 
 

 
 
 
 
Interest
209

 
222

Capitalized interest
3

 
5

Interest component of rentals charged to operating expense

 

Total fixed charges
212

 
227

 
 
 
 
Earnings, as defined
$
912

 
$
572

 
 
 
 
Ratio of earnings to fixed charges
4.30

 
2.52

  ____________
(1)
Excluded from the computation of fixed charges for the nine months ended September 30, 2011 and 2012 is interest income of $13 million and $8 million, respectively, which is included in income tax expense.