EXHIBIT 12
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
YEAR ENDED DECEMBER 31,
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1998 1999 2000 2001 2002
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Income (loss) from continuing operations..... $ (164,752) $ 1,642,855 $ 222,042 $ 446,925 $ 386,283
Income taxes for continuing operations....... (48,011) 890,371 234,196 228,252 208,026
Capitalized interest......................... (12,148) (14,675) (10,803) (9,125) (11,620)
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(224,911) 2,518,551 445,435 666,052 582,689
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Fixed charges, as defined:
Interest.................................. 538,763 489,098 509,974 551,534 682,700
Capitalized interest...................... 12,148 14,675 10,803 9,125 11,620
Distribution on trust preferred securities 29,201 51,220 54,358 55,598 55,545
Preference security dividend requirements
of subsidiary........................... 503 599 797 1,296 --
Interest component of rentals charged to
operating expense....................... 10,964 15,681 15,244 15,118 14,281
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Total fixed charges....................... 591,579 571,273 591,176 632,671 764,146
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Earnings, as defined......................... $ 366,668 $ 3,089,824 $ 1,036,611 $ 1,298,723 $1,346,835
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Ratio of earnings to fixed charges........... -- 5.41 1.75 2.05 1.76
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In 1998 earnings were inadequate to cover fixed charges by approximately
$225 million. This deficiency results from the $1.2 billion non-cash, unrealized
loss recorded for the ACES. Excluding the effect of the non-cash, unrealized
loss, the ratio of earnings from continuing operations to fixed charges would
have been 3.30.