Exhibit 12 (a)
ENERGY FUTURE COMPETITIVE HOLDINGS COMPANY.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES,
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS
| Successor | Predecessor | ||||||||||||||||||||
| Period from October 11, 2007 through December 31, 2007 | Period from January 1, 2007 through October 10, 2007 | ||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
EARNINGS: | |||||||||||||||||||||
Income (loss) from continuing operations before extraordinary gain/(loss) and cumulative effect of changes in accounting principles | $ | (1,266 | ) | $ | 1,306 | $ | 2,501 | $ | 1,816 | $ | 672 | $ | 736 | ||||||||
Add: Total federal income tax expense (benefit) | (675 | ) | 618 | 1,306 | 882 | 282 | 348 | ||||||||||||||
Fixed charges (see detail below) | 717 | 393 | 387 | 668 | 651 | 665 | |||||||||||||||
Preferred dividends of subsidiaries | — | — | — | — | — | — | |||||||||||||||
Total earnings (loss) | $ | (1,224 | ) | $ | 2,317 | $ | 4,194 | $ | 3,366 | $ | 1,605 | $ | 1,749 | ||||||||
FIXED CHARGES: | |||||||||||||||||||||
Interest expense | $ | 711 | $ | 369 | $ | 364 | $ | 633 | $ | 607 | $ | 616 | |||||||||
Rentals representative of the interest factor | 6 | 24 | 23 | 35 | 44 | 49 | |||||||||||||||
Fixed charges deducted from earnings | 717 | 393 | 387 | 668 | 651 | 665 | |||||||||||||||
Preferred dividends of subsidiaries (pretax) (a) | — | — | — | — | — | — | |||||||||||||||
Total fixed charges | 717 | 393 | 387 | 668 | 665 | ||||||||||||||||
Preference dividends of registrant (pretax) (a) | — | — | — | 4 | 3 | 7 | |||||||||||||||
Fixed charges and preference dividends | $ | 717 | $ | 393 | $ | 387 | $ | 672 | $ | 654 | $ | 672 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES (b) | — | 5.90 | 10.84 | 5.04 | 2.47 | 2.63 | |||||||||||||||
RATIO OF EARNINGS TO COMBINED FIXED | |||||||||||||||||||||
CHARGES AND PREFERENCE DIVIDENDS (b) | — | 5.90 | 10.84 | 5.01 | 2.45 | 2.60 | |||||||||||||||
| Successor | Predecessor | ||||||||
| Nine Months Ended September 30, 2008 | Nine Months Ended September 30, 2007 | ||||||||
EARNINGS: | |||||||||
Income (loss) from continuing operations | $ | (943 | ) | $ | 1,232 | ||||
Add: Total federal income tax expense (benefit) | (493 | ) | 545 | ||||||
Fixed charges (see detail below) | 2,197 | 371 | |||||||
Total earnings | $ | 761 | $ | 2,148 | |||||
FIXED CHARGES: | |||||||||
Interest expense | $ | 2,177 | $ | 352 | |||||
Rentals representative of the interest factor | 20 | 19 | |||||||
Fixed charges deducted from earnings | 2,197 | 371 | |||||||
Preferred dividends of subsidiaries (pretax) (a) | — | — | |||||||
Total fixed charges | 2,197 | 371 | |||||||
Preference dividends of registrant (pretax) (a) | — | — | |||||||
Fixed charges and preference dividends | $ | 2,197 | $ | 371 | |||||
RATIO OF EARNINGS TO FIXED CHARGES (b) | — | 5.79 | |||||||
RATIO OF EARNINGS TO COMBINED FIXED | |||||||||
CHARGES AND PREFERENCE DIVIDENDS (b) | — | 5.79 | |||||||
| (a) | Preferred/preference dividends multiplied by the ratio of pretax income to net income. |
| (b) | For the period from October 11, 2007 through December 31, 2007, fixed charges and combined fixed charges and preference dividends exceeded earnings by $1.941 billion. For the nine months ended September 30, 2008, fixed charges and combined fixed charges and preference dividends exceeded earnings by $1.436 billion. |