EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED AND PREFERENCE DIVIDEND REQUIREMENTS 12 Months Ended March December December December December December 1996 1995 1994 1993 1992 1991 (In Thousands of Dollars) Net Income $ 367,934 $ 338,007 $ 323,617 $ 309,866 $ 264,347 $ 233,681 Taxes on Income 192,761 172,388 156,702 140,833 105,994 88,041 Adjusted Net Income $ 560,695 $ 510,395 $ 480,319 $ 450,699 $ 370,341 $ 321,722 Fixed Charges: Interest and Amortization of Debt Discount and Expense and Premium on all Indebtedness $ 204,732 $ 206,666 $ 204,206 $ 199,415 $ 200,848 $ 213,616 Capitalized Interest 14,717 15,050 12,427 16,167 13,800 20,953 Interest Factor in Rentals 1,931 2,099 2,010 2,144 2,033 1,801 Total Fixed Charges $ 221,380 $ 223,815 $ 218,643 $ 217,726 $ 216,681 $ 236,370 Preferred and Preference Dividend Requirements: (1) Preferred and Preference Dividends $ 40,289 $ 40,578 $ 39,922 $ 41,839 $ 42,247 $ 42,746 Income Tax Required 20,843 20,434 19,074 18,763 16,729 15,916 Total Preferred and Preference Dividend Requirements $ 61,132 $ 61,012 $ 58,996 $ 60,602 $ 58,976 $ 58,662 Total Fixed Charges and Preferred and Preference Dividend Requirements $ 282,512 $ 284,827 $ 277,639 $ 278,328 $ 275,657 $ 295,032 Earnings (2) $ 767,358 $ 719,160 $ 686,535 $ 652,258 $ 573,222 $ 537,139 Ratio of Earnings to Fixed Charges 3.47 3.21 3.14 3.00 2.65 2.27 Ratio of Earnings to Combined Fixed Charges and Preferred and Preference Dividend Requirements 2.72 2.52 2.47 2.34 2.08 1.82 (1)Preferred and preference dividend requirements consist of an amount equal to the pre-tax earnings that would be required to meet dividend requirements on preferred stock and preference stock. (2)Earnings are deemed to consist of net income that includes earnings of BGE's consolidated subsidiaries, equity in the net income of BGE's unconsolidated subsidiary, income taxes (including deferred income taxes and investment tax credit adjustments), and fixed charges other than capitalized interest.