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)
Twelve Months Ended December 31,
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1994 1993 1992 1991 1990
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt ......................... $ 246,533 $ 276,049 $311,208 $ 326,722 $ 319,713
(2) Other Interest ..................................... 8,493 12,317 19,548 41,216 36,006
(3) Amortization of (Premium) Discount ................. 8,484 7,234 5,346 4,209 4,764
(4) Interest Component of Rentals Charged
to Operating Expense .............................. 3,951 4,449 5,116 5,943 5,628
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(5) Total Fixed Charges ................................ $ 267,461 $ 300,049 $341,218 $ 378,090 $ 366,111
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Earnings as Defined:
(6) Net Income ......................................... $ 486,764 $ 484,223 $509,462 $ 518,899 $ 476,962
(7) Cumulative Effect of Change in Accounting .......... 8,200 (94,180)
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(8) Income Before Cumulative Effect of Change
in Accounting ..................................... 494,964 484,223 415,282 518,899 476,962
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Income Taxes:
(9) Current ............................................ 181,109 113,394 129,611 143,054 143,653
(10) Deferred (Net) ..................................... 68,633 123,077 92,575 83,991 56,031
(11) Cumulative Effect of Change in Accounting .......... 4,415 (48,517)
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(12) Total Income Taxes Before Cumulative
Effect of Change in Accounting .................... 254,157 236,471 173,669 227,045 199,684
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(13) Total Fixed Charges (line 5) ....................... 267,461 300,049 341,218 378,090 366,111
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(14) Earnings Before Income Taxes and Fixed
Charges (line 8 plus line 12 plus line 13) ........ $1,016,582 $ 1,020,743 $930,169 $1,124,034 $1,042,757
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Ratio of Earnings to Fixed Charges
(line 14 divided by line 5) ........................... 3.80 3.40 2.73 2.97 2.85
Preferred Dividend Requirements:
(15) Preferred Dividends ................................ $ 33,583 $ 34,473 $ 39,327 $ 46,187 $ 47,753
(16) Less Tax Deduction for Preferred Dividends ......... 54 54 56 56 56
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(17) Total .............................................. 33,529 34,419 39,271 46,131 47,697
(18) Ratio of Pre-Tax Income to Net Income
(line 8 plus line 12 divided by line 8) ........... 1.51 1.49 1.42 1.44 1.42
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(19) Line 17 times line 18 .............................. 50,629 51,284 55,765 66,429 67,730
(20) Add Back Tax Deduction (line 16) ................... 54 54 56 56 56
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(21) Preferred Dividends Factor ......................... $ 50,683 $ 51,338 $ 55,821 $ 66,485 $ 67,786
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(22) Total Fixed Charges (line 5) ....................... $ 267,461 $ 300,049 $341,218 $ 378,090 $ 366,111
(23) Preferred Dividends Factor (line 21) ............... 50,683 51,338 55,821 66,485 67,786
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(24) Total .............................................. $ 318,144 $ 351,387 $397,039 $ 444,575 $ 433,897
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Ratio of Earnings to Fixed Charges and
Preferred Dividends Requirements
(line 14 divided by line 24) ...................... 3.20 2.90 2.34 2.53 2.40