EXHIBIT 12

            HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
           COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                         (THOUSANDS OF DOLLARS)

                                                               Six                  Twelve
                                                          Months Ended           Months Ended
                                                          June 30, 1994         June 30, 1994
                                                                          
Fixed Charges as Defined:

  (1)    Interest on Long-Term Debt..................    $     173,462          $   359,927
  (2)    Other Interest..............................           11,657               15,728
  (3)    Preferred Dividends Factor
                of Subsidiary........................           26,348               52,810
  (4)    Interest Component of Rentals
                Charged to Operating Expense.........            1,909                4,151
                                                         -------------          -----------

  (5)    Total Fixed Charges.........................    $     213,376          $   432,616
                                                         =============          ===========

Earnings as Defined:

  (6)    Income Before Cumulative Effect
                of Change in Accounting for
                Postemployment Benefits..............    $     172,203          $   460,974
  (7)    Income Taxes  ..............................          100,554              271,641
  (8)    Fixed Charges (line 5)......................          213,376              432,616
                                                         -------------          -----------

  (9)    Earnings Before Income Taxes
                and Fixed Charges....................    $     486,133          $ 1,165,231
                                                         =============          ===========

Preferred Dividends Factor of
        Subsidiary:

 (10)   Preferred Stock Dividends of
               Subsidiary...........................    $      16,676          $    33,214

 (11)   Ratio of Pre-Tax Income to
               Net Income (line 6 plus
               line 7 divided by line 6)............             1.58                 1.59
                                                        -------------          -----------

 (12)   Preferred Dividends Factor of
               Subsidiary (line 10 times
               line 11).............................    $      26,348          $    52,810
                                                        =============          ===========

Ratio of Earnings to Fixed Charges
      (line 9 divided by line 5).....................            2.28                 2.69