Exhibit 12 THE NARRAGANSETT ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited) 12 Months Ended June 30, 1994 Years Ended December 31, Actual ------------------------------------------------------------- (Unaudited) 1993 1992 1991 1990 1989 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $15,281 $14,274 $21,052 $16,820 $17,599 $10,582 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 3,507 2,183 4,608 1,558 7,624 4,690 Deferred federal income taxes 721 2,199 4,560 5,528 351 (2,509) Investment tax credits - net (508) (508) (507) (500) (504) (536) Interest on long-term debt 13,336 12,715 13,290 12,581 11,016 11,016 Interest on short-term debt and other2,325 2,074 1,277 2,500 2,968 2,117 ------- ------- ------- ------- ------- ------- Net earnings available for fixed charges$34,662$32,937 $44,280 $38,487 $39,054 $25,360 ------- ------- ------- ------- ------- ------- Fixed charges: Interest on long-term debt $13,336 $12,715 $13,290 $12,581 $11,016 $11,016 Interest on short-term debt and other2,325 2,074 1,277 2,500 2,968 2,117 ------- ------- ------- ------- ------- ------- Total fixed charges $15,661 $14,789 $14,567 $15,081 $13,984 $13,133 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 2.21 2.23 3.04 2.55 2.79 1.93 - ----------------------------------