Duke Energy Carolinas 10-K/A 2003 FY Annual report (amended)

EXHIBIT 12

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.

(dollars in millions)	Year Ended December 31,
	2003			2002		2001		2000		1999
Earnings as defined for fixed charges calculation
Add:
Pretax (loss) income from continuing operationsb	$	(1,780	)	$	1,805	$	3,310	$	3,052	$	1,329
Fixed charges		1,620			1,504		1,103		1,099		739
Distributed income of equity investees		263			369		156		138		111
Deduct:
Preference security dividend requirements of consolidated subsidiaries		140			170		170		126		87
Interest capitalizedc		58			193		139		54		37
Total (loss) earnings(as defined for the Fixed Charges calculation)	$	(95	)	$	3,315	$	4,260	$	4,109	$	2,055
Fixed charges:
Interest on debt, including capitalized portions	$	1,440		$	1,294	$	899	$	946	$	626
Estimate of interest within rental expense		40			40		34		27		26
Preference security dividend requirements of consolidated subsidiaries		140			170		170		126		87
Total fixed charges	$	1,620		$	1,504	$	1,103	$	1,099	$	739
Ratio of earnings to fixed charges		—	(d)		2.2		3.9		3.7		2.8

^a Income Statement amounts have been adjusted for discontinued operations.

^b Excludes minority interest expenses and income or loss from equity investees.

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

^d Earnings were inadequate to cover fixed charges by $1,715 million for the year ended December 31, 2003.