EX-12 2 ex12.htm COMPUTATION OF RATIOS OF EARNING TO FIXED CHARGES Unassociated Document
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,
  
   
        2004
    
        2005
    
        2006
    
        2007 (1)
    
        2008 (1)
  
                               
 Income from continuing operations
   $ 282     $ 223     $ 271     $ 273     $ 222  
 Income taxes for continuing operations
     137       108       132       126       121  
 Capitalized interest
     (2 )     (3 )     (4 )     (10 )     (7 )
      417       328       399       389       336  
                                         
 Fixed charges, as defined:
                                        
                                         
Interest
     345       328       240       230       245  
Capitalized interest
     2       3       4       10       7  
Interest component of rentals charged to
       operating expense
     1       1       2       1       2  
Total fixed charges
     348       332       246       241       254  
                                         
 Earnings, as defined
   $ 765     $ 660     $ 645     $ 630     $ 590  
                                         
 Ratio of earnings to fixed charges
     2.20       1.99       2.62       2.61       2.33  
________
 
(1)
Excluded from the computation of fixed charges for the years ended December 31, 2007 and 2008 is interest expense of $4 million and $7 million, respectively, which is included in income tax expense.