EX-12 13 h95922ex12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EXHIBIT 12 RELIANT ENERGY, INCORPORATED AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31, ------------------------------------------------------------- 2001 2000 1999 1998 1997 ---------- ---------- ---------- --------- ---------- (THOUSANDS OF DOLLARS) Income from continuing operations..................... $ 918,940 $ 440,055 $1,665,731 $(141,092) $ 421,110 Income taxes for continuing operations..................... 499,845 318,497 899,117 (31,708) 206,374 Capitalized interest............. (67,846) (44,565) (18,942) (6,023) (2,872) ---------- ---------- ---------- --------- ---------- 1,350,939 713,987 2,545,906 (178,823) 624,612 ---------- ---------- ---------- --------- ---------- Fixed charges, as defined: Interest....................... 602,090 713,674 500,151 502,432 384,928 Capitalized interest........... 67,846 44,565 18,942 6,023 2,872 Distribution on trust preferred securities.................. 55,598 54,358 51,220 29,201 26,230 Preference security dividend requirements of subsidiary.................. 1,321 669 599 476 2,496 Interest component of rentals charged to operating expense..................... 37,446 20,580 11,777 8,707 5,069 ---------- ---------- ---------- --------- ---------- Total fixed charges............ 764,301 833,846 582,689 546,839 421,595 ---------- ---------- ---------- --------- ---------- Earnings, as defined............. $2,115,240 $1,547,833 $3,128,595 $ 368,016 $1,046,207 ========== ========== ========== ========= ========== Ratio of earnings to fixed charges........................ 2.77 1.86 5.37 -- 2.48 ========== ========== ========== ========= ==========
In 1998 earnings were inadequate to cover fixed charges by approximately $179 million. This deficiency results from the pre-tax $1.2 billion non-cash, unrealized accounting loss recorded for the ACES indexed debt securities obligation. Excluding the effect of the non-cash, unrealized accounting loss, the ratio of earnings from continuing operations to fixed charges would have been 2.82.