Exhibit 12 TXU CORP. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES, AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS Nine Months Ended September 30, ------------------------ 2002 2001 ---------- ---------- Millions of Dollars, Except Ratios EARNINGS: Income from continuing operations before extraordinary items $ 700 $ 747 Add: Total federal income taxes (benefit) 274 17 Fixed charges (see detail below) 957 1,247 Preferred dividends of subsidiaries 10 10 ---------- ---------- Total earnings $ 1,941 $ 2,021 ========== ========== FIXED CHARGES: Interest expense $ 851 $ 1,093 Rentals representative of the interest factor 65 62 Distributions on preferred trust securities of subsidiaries* 41 92 ---------- ---------- Fixed charges deducted from earnings 957 1,247 Preferred dividends of subsidiaries (pretax)** 14 10 ---------- ---------- Total fixed charges 971 1,257 Preference dividends of registrant (pretax)** 22 16 ---------- ---------- Fixed charges and preference dividends $ 993 $ 1,273 ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 2.00 1.61 ========== ========== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS 1.95 1.59 ========== ========== <FN> * Distribution on preferred trust securities are deductible for tax purposes. ** Preferred/preference dividends multiplied by the ratio of pre-tax income to net income. </FN>