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)

   
    Nine Months Ended
September 30,
  
   
     2008 (1)
    
     2009 (1)
  
             
Net Income
   $ 196     $ 187  
Income taxes
     113       88  
Capitalized interest
     (5 )     (3 )
      304       272  
                 
Fixed charges, as defined:
                
                 
Interest                                                                                   
     182       216  
Capitalized interest                                                                                   
     5       3  
Interest component of rentals charged to operating income
     1       —  
Total fixed charges                                                                                   
     188       219  
                 
Earnings, as defined
   $ 492     $ 491  
                 
Ratio of earnings to fixed charges
     2.61       2.24  
  ________
 
(1)
Excluded from the computation of fixed charges for the nine months ended September 30, 2008 and 2009 is interest expense of $5 million and interest income of $1 million, respectively, which is included in income tax expense.