EX-12 2 exhibit12.htm EXHIBIT 12 exhibit12.htm

          Exhibit 12  
   
   
   
   
TENNESSEE GAS PIPELINE COMPANY
  
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
  
(IN MILLIONS, EXCEPT FOR RATIO)
  
   
   
For The Nine Months Ended
September 30,
  
   
2009
      
2008
  
Earnings
        
    Pre-tax income   $ 159       $ 134  
    Income from equity investee     (8)         (10)  
       Pre-tax income before income from equity investee     151         124  
 
                  
    Fixed charges     120         104  
    Distributed income of equity investee     10         13  
    Allowance for funds used during construction     (2)         (2)  
       Total earnings available for fixed charges   $ 279       $ 239  
                   
Fixed charges                  
    Interest and debt expense   $ 120       $  104  
                   
Ratio of earnings to fixed charges
     2.3         2.3  
   
 
 
 
For purposes of computing these ratios, earnings means pre-tax income before:
    
 
- income from equity investee, adjusted to reflect actual distribution from equity investment; and
 
- fixed charges;
                            
less
                                  
 
- allowance for funds used during construction.
                            
                                   
Fixed charges means the sum of the following:
                            
 
- interest costs, not including interests on tax liabilities which is included in income tax expense on our income statement;
                    
 
- amortization of debt costs; and
                            
 
- that portion of rental expense which we believe represents an interest factor, which was not material for the nine months ended September 30, 2009 and 2008.