Exhibit 12 VIRGINIA ELECTRIC AND POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (thousands of dollars) Twelve Months Ended --------------------------------------------------------------------------------------------- Mar-98 Dec-97 Dec-96 Dec-95 Dec-94 Dec-93 ---------- ---------- --------- ---------- ---------- ---------- Net Income $457,385 $469,114 $457,304 $432,844 $447,144 $509,051 Add: Income Taxes 246,824 249,293 243,993 228,785 225,647 257,217 ---------- ---------- --------- ---------- ---------- ---------- Total Pretax Net Income $704,209 $718,407 $701,297 $661,629 $672,791 $766,268 ========== ========== ========= ========== ========== ========== Fixed Charges: Interest on Long-Term Debt $302,051 $274,850 $287,928 $302,618 $291,864 $300,152 Other Interest inc. above 30,703 22,380 19,998 7,551 19,121 Paid Distribution of Affiliate 10,868 10,868 10,867 3,653 Estimated Interest Factor of Rents Charged to Operating Expenses, Clearing & Other Accounts 9,228 8,595 6,291 6,475 7,132 5,660 ---------- ---------- --------- ---------- ---------- ---------- Total Fixed Charges $322,147 $325,016 $327,466 $332,744 $306,547 $324,933 ========== ========== ========= ========== ========== ========== Earnings as Defined $1,026,356 $1,043,423 $1,028,763 $994,373 $979,338 $1,091,201 ========== ========== ========= ========== ========== ========== Ratio of Earnings to Fixed Charges 3.19 3.21 3.14 2.99 3.19 3.36 ========== ========== ========= ========== ========== ==========