Exhibit No. 12
SPECTRA ENERGY CAPITAL, LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines (a).
| Year Ended December 31, | ||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
| (dollars in millions) | ||||||||||||||||
| Earnings as defined for fixed charges calculation Add: | ||||||||||||||||
Pretax (loss) income from continuing operations (b)(e) | $ | 767 | $ | 2,492 | $ | 685 | $ | (615 | ) | $ | 388 | |||||
Fixed charges | 759 | 878 | 1,135 | 1,243 | 1,219 | |||||||||||
Distributed income of equity investees | 860 | 472 | 140 | 263 | 369 | |||||||||||
Deduct: | ||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 27 | 27 | 31 | 102 | 157 | |||||||||||
Interest capitalized (c) | 35 | 41 | 36 | 46 | 161 | |||||||||||
Total earnings (as defined for the Fixed Charges calculation) | $ | 2,324 | $ | 3,774 | $ | 1,893 | $ | 743 | $ | 1,658 | ||||||
Fixed charges: | ||||||||||||||||
Interest on debt, including capitalized portions | $ | 718 | $ | 827 | $ | 1,080 | $ | 1,117 | $ | 1,041 | ||||||
Estimate of interest within rental expense | 14 | 24 | 24 | 24 | 21 | |||||||||||
Preference security dividend requirements of consolidated subsidiaries | 27 | 27 | 31 | 102 | 157 | |||||||||||
Total fixed charges | $ | 759 | $ | 838 | $ | 1,135 | $ | 1,143 | $ | 1,219 | ||||||
Ratio of earnings to fixed charges (e) | 3.1 | 4.5 | 1.7 | (d | ) | 2.0 | ||||||||||
| (a) | Certain prior year Income Statement amounts above have been adjusted for businesses reclassified to discontinued operations during 2006. |
| (b) | Excludes minority interest expenses and income or loss from equity investees. |
| (c) | Excludes equity costs related to AFUDC that are included in Other Income and Expenses in the Consolidated Statements of Operations. |
| (d) | Earnings were inadequate to cover fixed charges by $241 million for the year ended December 31, 2003. |
| (e) | Includes pre-tax gains on the sale of TEPPCO GP and LP of approximately $0.9 billion, net of minority interest, in 2005. |