Exhibit 12 MASSACHUSETTS ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited) 12 Months Ended June 30, 1996 Years Ended December 31, Actual ------------------------------------------------------------- (Unaudited) 1995 1994 1993 1992 1991 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $37,598 $29,101 $34,726 $23,779 $34,905 $25,243 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 20,341 9,437 (6,762) 5,606 3,977 8,568 Deferred federal income taxes (336) 6,156 24,932 3,430 13,451 3,889 Investment tax credits - net (1,125) (1,132) (1,228) (1,228) (1,228) (1,194) Massachusetts franchise tax 4,902 3,935 4,681 3,348 3,858 2,920 Interest on long-term debt 26,781 25,901 20,967 23,403 21,910 20,157 Interest on short-term debt and other6,368 6,784 6,366 3,638 3,657 3,643 ------- ------- ------- ------- ------- ------- Net earnings available for fixed charges $94,529 $80,182 $83,682 $61,976 $80,530 $63,226 ------- ------- ------- ------- ------- ------- Fixed charges: Interest on long-term debt $26,781 $25,901 $20,967 $23,403 $21,910 $20,157 Interest on short-term debt and other6,368 6,784 6,366 3,638 3,657 3,643 ------- ------- ------- ------- ------- ------- Total fixed charges $33,149 $32,685 $27,333 $27,041 $25,567 $23,800 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 2.85 2.45 3.06 2.29 3.15 2.66 - ----------------------------------