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, 1995                 SEPTEMBER 30, 1995
                                                                     ------------------                 ------------------
                                                                                                                 
Fixed Charges as Defined:
   (1) Interest on Long-Term Debt.................................   $          184,955                 $          246,524
   (2) Other Interest.............................................                6,639                              9,194
   (3) Amortization of (Premium)
           Discount...............................................                6,474                              8,595
   (4) Interest Component of Rentals
           Charged to Operating Expense...........................                2,686                              3,688
                                                                     ------------------                 ------------------
   (5)          Total Fixed Charges...............................   $          200,754                 $          268,001
                                                                     ==================                 ==================
Earnings as Defined:
   (6) Net Income  ...............................................   $          440,148                 $          466,675
                                                                     ------------------                 ------------------
   Federal Income Taxes:
   (7) Current....................................................              181,323                            190,780
   (8) Deferred (Net).............................................               40,573                             37,536
                                                                     ------------------                 ------------------
   (9) Total Federal Income Taxes.................................              221,896                            228,316
                                                                     ------------------                 ------------------
  (10) Total Fixed Charges (line 5)...............................              200,754                            268,001
                                                                     ------------------                 ------------------
  (11) Earnings Before Income Taxes and
           Fixed Charges (line 6 plus
           line 9 plus line 10)...................................   $          862,798                 $          962,992
                                                                     ==================                 ==================
Ratio of Earnings to Fixed Charges
     (line 11 divided by line 5)..................................                 4.30                               3.59

Preferred Dividends Requirements:
  (12) Preferred Dividends .......................................   $           23,207                 $           31,809
  (13) Less Tax Deduction for
           Preferred Dividends....................................                   41                                 54
                                                                     ------------------                 ------------------
  (14)          Total.............................................               23,166                             31,755

  (15) Ratio of Pre-Tax Income to Net
           Income (line 6 plus line 9
           divided by line 6).....................................                 1.50                               1.49
                                                                     ------------------                 ------------------
  (16) Line 14 times line 15......................................               34,749                             47,315
  (17) Add Back Tax Deduction
           (line 13)..............................................                   41                                 54
                                                                     ------------------                 ------------------
  (18) Preferred Dividends Factor.................................   $           34,790                 $           47,369
                                                                     ==================                 ==================
  (19) Total Fixed Charges (line 5)...............................   $          200,754                 $          268,001
  (20) Preferred Dividends Factor
           (line 18)..............................................               34,790                             47,369
                                                                     ------------------                 ------------------
  (21)          Total.............................................   $          235,544                 $          315,370
                                                                     ==================                 ==================
Ratio of Earnings to Fixed Charges and
    Preferred Dividends Requirements
    (line 11 divided by line 21)..................................                 3.66                               3.05