EXHIBIT 12 HOUSTON LIGHTING & POWER COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (Thousands of Dollars) Three Twelve Months Ended Months Ended March 31, 1994 March 31,1994 Fixed Charges as Defined: (1) Interest on Long-Term Debt $ 61,842 $ 268,287 (2) Other Interest . . . . . . 2,896 10,557 (3) Amortization of (Premium) Discount . . . . . . . . . 2,121 7,760 (4) Interest Component of Rentals Charged to Operating Expense 1,074 4,383 (5) Total Fixed Charges . . $ 67,933 $ 290,987 Earnings as Defined: (6) Net Income . . . . . . . . $ 49,959 $ 493,462 (7) Cumulative Effect of Change in Accounting for Postemployment Benefits . . . . . . . . . 8,200 8,200 (8) Income Before Cumulative Effect of Change in Accounting for Postemployment Benefits . 58,159 501,662 Federal Income Taxes: (9) Current . . . . . . . . . 21,530 123,191 (10) Deferred (Net) . . . . . . 915 125,035 (11) Cumulative Effect of Change in Accounting for Postemployment Benefits . . . . . . . . . 4,415 4,415 (12) Total Federal Income Taxes Before Cumulative Effect of Change in Accounting for Postemployment Benefits . 26,860 252,641 (13) Fixed Charges (line 5) . . 67,933 290,987 (14) Earnings Before Income Taxes and Fixed Charges (line 8 plus line 12 plus line 13) $ 152,952 $ 1,045,290 Ratio of Earnings to Fixed Charges (line 14 divided by line 5) . . 2.25 3.59 Preferred Dividends Requirements: (15) Preferred Dividends . . . $ 8,273 $ 33,600 (16) Less Tax Deduction for Preferred Dividends . . . 14 54 (17) Total . . . . . . . . . 8,259 33,546 (18) Ratio of Pre-Tax Income to Net Income (line 8 plus line 12 divided by line 8) . . . . 1.46 1.50 (19) Line 17 times line 18 . . 12,058 50,319 (20) Add Back Tax Deduction (line 16) . . . . . . . . 14 54 (21) Preferred Dividends Factor $ 12,072 $ 50,373 (22) Fixed Charges (line 5) . . $ 67,933 $ 290,987 (23) Preferred Dividends Factor (line 21) . . . . . . . . 12,072 50,373 (24) Total . . . . . . . . . $ 80,005 $ 341,360 Ratio of Earnings to Fixed Charges and Preferred Dividends (line 14 divided by line 24) . . 1.91 3.06