Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The earnings to fixed charges ratio is calculated using the Securities
and Exchange Commission guidelines.
---------------------------------------------------------- SIX MONTHS
YEAR ENDED DECEMBER 31. ENDED JUNE 30,
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2001 2000 1999 1998 1997(a) 2002
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Dollars in millions
Earnings as defined for fixed charges calculation
Add:
Pretax income from continuing operations(b) $3,303 $3,000 $1,331 $2,055 $1,598 $1,232
Fixed charges 1,128 1,123 757 599 535 678
Distributed income of equity investees 156 138 111 94 55 111
Deduct:
Preference security dividend requirements of
consolidated subsidiaries 170 126 87 44 15 84
Interest capitalized(c) 139 54 37 15 20 117
------ ------ ------ ------ ------ -----
Total earnings $4,278 $4,081 $2,075 $2,689 $2,153 $1,820
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Fixed charges:
Interest on debt, including capitalized
portions $ 924 $ 970 $ 644 $ 533 $ 497 $ 572
Estimate of interest within rental expense 34 27 26 22 23 22
Preference security dividend requirements of
consolidated subsidiaries 170 126 87 44 15 84
------ ------ ------ ------ ------ ------
Total fixed charges $1,128 $1,123 $ 757 $ 599 $ 535 $ 678
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Ratio of earnings to fixed charges 3.8 3.6 2.7 4.5 4.0 2.7
(a) Financial information reflects accounting for the 1997 merger with
PanEnergy as a pooling of interests. As a result, the financial
information gives effect to the merger as if it had occurred January 1,
1997.
(b) Excludes minority interest expenses and income or loss from equity
investees
(c) Excludes equity costs related to Allowance for Funds Used During
Construction that are included in Other Income and Expenses in the
Consolidated Statements of Income