EX-12 2 h33324exv12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EXHIBIT 12 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (MILLIONS OF DOLLARS)
YEAR ENDED DECEMBER 31, --------------------------------------- 2001 2002 2003 2004 2005 ----- ------ ------ ----- ----- Income from continuing operations ............................... $ 446 $ 547 $ 432 $ 282 $ 223 Income taxes for continuing operations .......................... 228 286 230 137 108 Capitalized interest ............................................ (9) (3) (3) (2) (3) Preference security dividend requirements of subsidiary ......... (1) -- -- -- -- ----- ------ ------ ----- ----- 664 830 659 417 328 ----- ------ ------ ----- ----- Fixed charges, as defined: Interest ..................................................... 233 285 361 345 328 Capitalized interest ......................................... 9 3 3 2 3 Preference security dividend requirements of subsidiary ...... 1 -- -- -- -- Interest component of rentals charged to operating expense ... 2 2 2 1 1 ----- ------ ------ ----- ----- Total fixed charges .......................................... 245 290 366 348 332 ----- ------ ------ ----- ----- Earnings, as defined ............................................ $ 909 $1,120 $1,025 $ 765 $ 660 ===== ====== ====== ===== ===== Ratio of earnings to fixed charges .............................. 3.71 3.86 2.80 2.20 1.99 ===== ====== ====== ===== =====