Duke Energy (DUK) 8-K Unaudited Condensed Consolidated Interim Financial Statements

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY CORPORATION

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

	Three Months Ended March 31,		Year Ended December 31,
	2011		2010		2009		2008		2007		2006
	(dollars in millions)
Earnings as defined for fixed charges calculation
Add:
Pretax income from continuing operations (a)	$	716	$	2,097	$	1,770	$	1,993	$	2,078	$	1,421
Fixed charges		270		1,045		892		883		797		1,382
Distributed income of equity investees		31		111		82		195		147		893
Deduct:
Preference security dividend requirements of consolidated subsidiaries		—		—		—		—		—		27
Interest capitalized (b)		41		168		102		93		71		56
Total earnings (as defined for the Fixed Charges calculation)	$	976	$	3,085	$	2,642	$	2,978	$	2,951	$	3,613
Fixed charges:
Interest on debt, including capitalized portions(b)	$	260	$	1,008	$	853	$	834	$	756	$	1,311
Estimate of interest within rental expense		10		37		39		49		41		44
Preference security dividend requirements of consolidated subsidiaries		—		—		—		—		—		27
Total fixed charges	$	270	$	1,045	$	892	$	883	$	797	$	1,382
Ratio of earnings to fixed charges		3.6		3.0		3.0		3.4		3.7		2.6

^(a)  Excludes amounts attributable to noncontrolling interests and income or loss from equity investees.

^(b)  Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations.