THE NARRAGANSETT ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited) 12 Months Ended June 30, 1999 Years Ended December 31, Actual - ------------------------------------------------------------- (Unaudited) 1998 1997 1996 1995 1994 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $30,359 $32,253 $27,932 $22,954 $23,910 $14,589 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 15,622 19,312 14,185 6,918 7,212 1,020 Deferred federal income taxes 492 (2,212) 79 4,675 3,512 3,930 Investment tax credits - net (487) (489) (495) (498) (503) (508) Interest on long-term debt 14,531 14,925 16,179 17,205 16,627 14,334 Interest on short-term debt and other 3,681 3,615 2,475 2,883 3,663 2,897 ------- ------- ------- ------- - ------- ------- Net earnings available for fixed charges $64,198 $67,404 $60,355 $54,137 $54,421 $36,262 ------- ------- ------- ------- - ------- ------- Fixed charges: Interest on long-term debt $14,531 $14,925 $16,179 $17,205 $16,627 $14,334 Interest on short-term debt and other 3,681 3,615 2,475 2,883 3,663 2,897 ------- ------- ------- ------- - ------- ------- Total fixed charges $18,212 $18,540 $18,654 $20,088 $20,290 $17,231 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 3.53 3.64 3.24 2.69 2.68 2.10 - ----------------------------------