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)
Nine Twelve
Months Ended Months Ended
September 30, 1994 September 30, 1994
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt ......... $184,964 $ 249,203
(2) Other Interest ..................... 5,938 6,709
(3) Amortization of Premium/Discount-net 6,363 8,448
(4) Interest Component of Rentals
Charged to Operating Expense ....... 2,947 4,021
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(5) Total Fixed Charges ............ $200,212 $ 268,381
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Earnings as Defined:
(6) Net Income ......................... $460,237 $ 509,355
(7) Cumulative Effect of Change in
Accounting for Postemployment
Benefits ........................ 8,200 8,200
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(8) Income Before Cumulative Effect of
Change in Accounting for
Postemployment Benefits ......... 468,437 517,555
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Federal Income Taxes:
(9) Current ............................ 171,647 178,252
(10) Deferred (Net) ..................... 71,673 81,651
(11) Cumulative Effect of Change in
Accounting for Postemployment
Benefits ........................ 4,415 4,415
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(12) Total Federal Income Taxes
Before Cumulative Effect of
Change in Accounting for
Postemployment Benefits ......... 247,735 264,318
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(13) Fixed Charges (line 5) ............. 200,212 268,381
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(14) Earnings Before Income Taxes and
Fixed Charges (line 8 plus
line 12 plus line 13) ........... $916,384 $1,050,254
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Ratio of Earnings to Fixed Charges
(line 14 divided by line 5) ............ 4.58 3.91
Preferred Dividends Requirements:
(15) Preferred Dividends ................ $ 24,981 $ 33,282
(16) Less Tax Deduction for Preferred
Dividends ....................... 41 54
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(17) Total ......................... 24,940 33,228
(18) Ratio of Pre-Tax Income to Net
Income (line 8 plus line 12
divided by line 8) .............. 1.53 1.51
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(19) Line 17 times line 18 .............. 38,158 50,174
(20) Add Tax Deduction for Preferred
Dividends (line 16) ............. 41 54
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(21) Preferred Dividends Factor ......... $ 38,199 $ 50,228
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(22) Fixed Charges (line 5) ............. $200,212 $ 268,381
(23) Preferred Dividends Factor
(line 21) ....................... 38,199 50,228
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(24) Total ......................... $238,411 $ 318,609
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Ratio of Earnings to Fixed Charges and
Preferred Dividends
(line 14 divided by line 24) ............ 3.84 3.30