EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED AND PREFERENCE DIVIDEND REQUIREMENTS 12 MONTHS ENDED DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER 1994 1993 1992 1991 1990 (IN THOUSANDS OF DOLLARS) Net Income........................................... $323,617 $309,866 $264,347 $233,681 $175,446 Taxes on Income...................................... 156,702 140,833 105,994 88,041 22,818 Adjusted Net Income.................................. $480,319 $450,699 $370,341 $321,722 $198,264 Fixed Charges: Interest and Amortization of Debt Discount and Expense and Premium on all Indebtedness......... $204,206 $199,415 $200,848 $213,616 $194,656 Capitalized Interest............................... 12,427 16,167 13,800 20,953 25,748 Interest Factor in Rentals......................... 2,010 2,144 2,033 1,801 1,840 Total Fixed Charges................................ $218,643 $217,726 $216,681 $236,370 $222,244 Preferred and Preference Dividend Requirements: (1) Preferred and Preference Dividends.............. $ 39,922 $ 41,839 $ 42,247 $ 42,746 $ 40,261 Income Tax Required............................. 19,074 18,763 16,729 15,916 5,166 Total Preferred and Preference Dividend Requirements.................................. $ 58,996 $ 60,602 $ 58,976 $ 58,662 $ 45,427 Total Fixed Charges and Preferred and Preference Dividend Requirements.............................. $277,639 $278,328 $275,657 $295,032 $267,671 Earnings (2)......................................... $686,535 $652,258 $573,222 $537,139 $394,760 Ratio of Earnings to Fixed Charges................... 3.14 3.00 2.65 2.27 1.78 Ratio of Earnings to Combined Fixed Charges and Preferred and Preference Dividend Requirements..... 2.47 2.34 2.08 1.82 1.47 <FN> (1) Preferred and preference dividend requirements consist of an amount equal to the pre-tax earnings which would be required to meet dividend requirements on preferred stock and preference stock. (2) Earnings are deemed to consist of net income which includes earnings of BGE's consolidated subsidiaries, equity in the net income of BGE's unconsolidated subsidiary, income taxes (including deferred income taxes and investment tax credit adjustments), and fixed charges other than capitalized interest.