NSTAR Electric (NSARO) 10-Q 2012 Q2 Quarterly report

Northeast Utilities												Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
(Thousands of Dollars)		Six Months
		Ended	For the Years Ended December 31,
		June 30, 2012		2011		2010		2009		2008		2007
Earnings, as defined:
Net income	$	146,974	$	400,513	$	394,107	$	335,592	$	266,387	$	251,455
Income tax expense		82,019		170,953		210,409		179,947		105,661		109,420
Equity in earnings of regional nuclear
generating and transmission companies		(584)		(671)		(1,429)		(1,762)		(1,637)		(3,983)
Dividends received from regional equity investees		677		940		1,488		3,794		1,017		4,542
Fixed charges, as below		167,823		275,948		263,393		296,764		304,374		275,611
Less: Interest capitalized (including AFUDC)		(2,863)		(11,758)		(10,165)		(5,929)		(17,797)		(17,568)
Less: Preferred dividend security requirements of
consolidated subsidiaries		(5,448)		(9,265)		(10,170)		(9,265)		(9,265)		(9,265)
Total earnings, as defined	$	388,598	$	826,660	$	847,633	$	799,141	$	648,740	$	610,212
Fixed charges, as defined:
Interest on long-term debt (a)	$	146,892	$	231,630	$	231,089	$	224,712	$	193,883	$	162,841
Interest on rate reduction bonds		3,487		8,611		20,573		36,524		50,231		61,580
Other interest (b)		5,116		10,184		(14,371)		12,401		25,031		15,824
Rental interest factor		4,017		4,500		5,767		7,933		8,167		8,533
Preferred dividend security requirements of
consolidated subsidiaries		5,448		9,265		10,170		9,265		9,265		9,265
Interest capitalized (including AFUDC)		2,863		11,758		10,165		5,929		17,797		17,568
Total fixed charges, as defined	$	167,823	$	275,948	$	263,393	$	296,764	$	304,374	$	275,611
Ratio of Earnings to Fixed Charges		2.32		3.00		3.22		2.69		2.13		2.21
(a) Interest on long-term debt includes amortized premiums, discounts and capitalized expenses related to indebtedness.
(b) For all periods presented, other interest includes interest related to accounting for uncertain tax positions.