Centerpoint Energy Houston Electric 10-Q 2011 Q2 Quarterly report

Exhibit 12

CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES

(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Millions of Dollars)

	Six Months Ended June 30,
	2010 (1)			2011 (1)
Net Income	$	90		$	103
Income taxes		51			58
Capitalized interest		(1	)		(2	)
		140			159
Fixed charges, as defined:
Interest		146			140
Capitalized interest		1			2
Interest component of rentals charged to operating expense		—			—
Total fixed charges		147			142
Earnings, as defined	$	287		$	301
Ratio of earnings to fixed charges		1.95			2.12

(1) Excluded from the computation of fixed charges for the six months ended June 30, 2010 and 2011 is interest expense of $3 million and $4 million, respectively, which is included in income tax expense.