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EXHIBIT 12
RELIANT RESOURCES, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
<Table>
<Caption>
FOR THE
THREE MONTHS ENDED
FOR THE YEAR ENDED DECEMBER 31, MARCH 31,
------------------------------------------------------------ ------------------------
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
------------------------------------------------------------ ----------- ---------
1998 1999 2000 2001 2002 2002 2003(1)
--------- --------- --------- --------- --------- ----------- ---------
Fixed charges:
Interest expense ...................... $ 1,808 $ -- $ 7,019 $ 16,152 $ 267,007 $ 29,159 $ 97,033
Interest expense - affiliated companies,
net (2) ............................. -- 5,534 172,311 -- -- -- --
Capitalized interest .................. -- 8,250 34,625 58,720 27,441 8,986 17,569
Interest within rent expense .......... 333 479 10,818 35,174 54,407 11,053 15,432
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges ................. $ 2,141 $ 14,263 $ 224,773 $ 110,046 $ 348,855 $ 49,198 $ 130,034
========= ========= ========= ========= ========= ========= =========
Earnings from continuing operations:
Income (loss) from continuing operations
before income taxes ................. $ 38,609 $ 11,326 $ 245,338 $ 755,400 $ 268,234 $ 126,589 $ (65,943)
Loss (income) of equity investments of
unconsolidated subsidiaries ......... 601 793 (42,860) (6,771) (17,836) (3,784) 1,210
--------- --------- --------- --------- --------- --------- ---------
Subtotal .......................... 39,210 12,119 202,478 748,629 250,398 122,805 (64,733)
--------- --------- --------- --------- --------- --------- ---------
Plus-
Fixed charges from above ............ 2,141 14,263 224,773 110,046 348,855 49,198 130,034
Amortization of capitalized interest -- 138 852 2,408 3,844 884 1,149
Distributed income of equity
investees .......................... -- -- 17,929 27,159 2,975 1,500 1,000
Less-
Capitalized interest ................ -- (8,250) (34,625) (58,720) (27,441) (8,986) (17,569)
--------- --------- --------- --------- --------- --------- ---------
$ 41,351 $ 18,270 $ 411,407 $ 829,522 $ 578,631 $ 165,401 $ 49,881
========= ========= ========= ========= ========= ========= =========
Ratio of earnings from continuing operations
to fixed charges ......................... 19.31 1.28 1.83 7.54 1.66 3.36 --
========= ========= ========= ========= ========= ========= =========
</Table>
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(1) For the three months ended March 31, 2003, our earnings were insufficient
to cover our fixed charges by $80 million.
(2) If the net amount for the applicable period netted to interest income, it
is excluded from this schedule for purposes of calculating fixed charges.