Exhibit 12 MASSACHUSETTS ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited) 12 Months Ended September 30, 1994 Years Ended December 31, Actual ------------------------------------------------------------- (Unaudited) 1993 1992 1991 1990 1989 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $38,877 $23,779 $34,905 $25,243 $35,192 $19,389 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes (2,487) 5,606 3,977 8,568 14,681 8,169 Deferred federal income taxes 19,920 3,430 13,451 3,889 1,044 (845) Investment tax credits - net (1,228) (1,228) (1,228) (1,194) (1,225) (1,412) Massachusetts franchise tax 5,093 3,348 3,858 2,920 3,765 2,165 Interest on long-term debt 20,926 23,403 21,910 20,157 20,626 17,602 Interest on short-term debt and other7,476 3,638 3,657 3,643 3,090 5,257 ------- ------- ------- ------- ------- ------- Net earnings available for fixed charges$88,577$61,976 $80,530 $63,226 $77,173 $50,325 ------- ------- ------- ------- ------- ------- Fixed charges: Interest on long-term debt $20,926 $23,403 $21,910 $20,157 $20,626 $17,602 Interest on short-term debt and other7,476 3,638 3,657 3,643 3,090 5,257 ------- ------- ------- ------- ------- ------- Total fixed charges $28,402 $27,041 $25,567 $23,800 $23,716 $22,859 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 3.12 2.29 3.15 2.66 3.25 2.20 - ----------------------------------