EXHIBIT 12 DUKE CAPITAL CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) Nine Months Ended Twelve Months Ended December 31, September 30, ------------------- ------------------------------------------------ 1999 1998 1998 1997(1) 1996(1) 1995(1) 1994(1) -------- -------- -------- -------- -------- -------- -------- Earnings Before Income Taxes.................. $ 521 $ 578 $ 829 $ 637 $ 651 $ 572 $ 448 Fixed Charges........... 230 195 258 235 254 264 263 ------- ------- ------- ----- ----- ----- ----- Total............... $ 751 $ 773 $1,087 $ 872 $ 905 $ 836 $ 711 ======= ======= ======= ===== ===== ===== ===== Fixed Charges Interest on debt....... $ 225 $ 189 $ 251 $ 224 $ 238 $ 253 $ 253 Interest component of rentals............... 5 6 7 11 16 11 10 ------- ------- ------- ----- ----- ----- ----- Fixed Charges....... $ 230 $ 195 $ 258 $ 235 $ 254 $ 264 $ 263 ======= ======= ======= ===== ===== ===== ===== Ratio of Earnings to Fixed Charges.......... 3.3 4.0 4.2 3.7 3.6 3.2 2.7 - ---------------------- (1) Financial information reflects accounting for the combination with PanEnergy Corp on June 30, 1997 similar to a pooling of interests. As a result, the financial information gives effect to the combination as if it had occurred as of January 1, 1994.