EXHIBIT 12(b) TEXAS UTILITIES ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES, AND TO FIXED CHARGES AND PREFERRED DIVIDENDS Year Ended December 31, ----------------------- 1997 1996 1995 1994 1993 Thousands of Dollars, Except Ratios EARNINGS: Net income $ 771,874 $ 862,695 $ 452,631 $ 658,192 $ 476,526 Add: Total income taxes 409,546 405,499 212,953 342,687 241,740 Fixed charges (see detail below) 618,773 649,295 655,678 688,194 715,609 ---------- ---------- ---------- ---------- ---------- Total earnings $1,800,193 $1,917,489 $1,321,262 $1,689,073 $1,433,875 ========== ========== ========== ========== ========== FIXED CHARGES: Interest on mortgage bonds $439,398 $ 486,791 $ 526,977 $ 567,363 $ 610,999 Interest on other long-term debt 22,124 26,456 44,071 32,183 45,787 Amortization of debt discount, (premium) and expense 11,053 11,067 9,959 8,615 6,493 Amortization of loss on reacquired debt 24,149 22,520 19,547 17,608 12,471 Other interest charges 30,542 48,872 28,994 36,408 10,222 Preferred trust securities distributions 69,701 33,001 1,801 -- -- Rentals representative of the interest factor 21,806 20,588 24,329 26,017 29,637 ---------- ---------- ---------- ---------- ---------- Total fixed charges $ 618,773 $ 649,295 $ 655,678 $ 688,194 $ 715,609 ========== ========== ========== ========== ========== Preferred dividends* 15,439 68,988 93,489 143,233 168,465 ---------- ---------- ---------- ---------- ---------- Fixed charges and preferred dividends $ 634,212 $ 718,283 $ 749,167 $ 831,427 $ 884,074 ========== ========== ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 2.9 3.0 2.0 2.5 2.0 ========== ========== ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS 2.8 2.7 1.8 2.0 1.6 ========== ========== ========== ========== ========== . Preferred dividends represent (1) the portion of preferred dividends deductible for federal income tax purposes, plus (2) the balance of preferred dividend requirements multiplied by the ratio of pre-tax income to net income.