EX-12 2 ex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES ex12.htm
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)

   
    Six Months Ended June 30,
  
   
     2008 (1)
    
     2009 (1)
  
             
Net Income
   $ 98     $ 69  
Income taxes
     59       45  
Capitalized interest
     (4 )     (2 )
      153       112  
                 
Fixed charges, as defined:
                
                 
Interest                                                                                   
     121       145  
Capitalized interest                                                                                   
     4       2  
Interest component of rentals charged to operating income
     —       —  
Total fixed charges                                                                                   
     125       147  
                 
Earnings, as defined
   $ 278     $ 259  
                 
Ratio of earnings to fixed charges
     2.22       1.77  
  ________
 
(1)
Excluded from the computation of fixed charges for the six months ended June 30, 2008 and 2009 is interest expense of $3 million and $8 million, respectively, which is included in income tax expense.