EXHIBIT 11 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE AND COMMON EQUIVALENT SHARE (Thousands of Dollars, except per share amounts) Three Months Ended March 31, 1994 1993 Primary Earnings Per Share: (1) Weighted average shares of common stock outstanding . . . . . . . . . 130,706,753 129,600,283 (2) Effect of issuance of shares from assumed exercise of stock options (treasury stock method) . . . . . . . . . (23,017) 5,593 (3) Weighted average shares . . . . . . . . . . 130,683,736 129,605,876 (4) Net income . . . . . . . . . . . . . . . . $ 30,175 $ 27,055 (5) Primary earnings per share (line 4 divided by line 3) . . . . . . . . $ .23 $ .21 Fully Diluted Earnings Per Share: (6) Weighted average shares per computation (line 3) . . . . . . . . . . . 130,683,736 129,605,876 (7) Shares applicable to options included (line 2) . . . . . . . . . . . . 23,017 (5,593) (8) Dilutive effect of stock options based on the average price for the quarter or quarter-end price, whichever is higher, of $40.50 and $46.88 for 1994 and 1993, respectively (treasury stock method) . . . . . . . . . (23,017) 5,593 (9) Weighted average shares . . . . . . . . . . 130,683,736 129,605,876 (10) Net income . . . . . . . . . . . . . . . . $ 30,175 $ 27,055 (11) Fully diluted earnings per share (line 10 divided by line 9) . . . . $ .23 $ .21 Notes: These calculations are submitted in accordance with Regulation S-K item 601(b) (11) although it is not required for financial presentation disclosure per footnote 2 to paragraph 14 of Accounting Principles Board (APB) Opinion No. 15 because it does not meet the 3% dilutive test. The calculations for the three months ended March 31, 1994 are submitted in accordance with Regulation S-K item 601 (b) (11) although they are contrary to paragraphs 30 and 40 of APB No. 15 because they produce anti-dilutive results.