EXHIBIT 12.1 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (THOUSANDS OF DOLLARS) NINE MONTHS ENDED SEPTEMBER 30, ------------- 2002 2003 ---- ---- Income from continuing operations ......... $ 498,339 $ 373,530 Income taxes for continuing operations .... 258,994 202,089 Capitalized interest ...................... (3,206) (2,277) --------- --------- 754,127 573,342 --------- --------- Fixed charges, as defined: Interest ............................... 185,358 272,941 Capitalized interest ................... 3,206 2,277 Interest component of rentals charged to operating expense .................... 1,644 1,327 --------- --------- Total fixed charges .................... 190,208 276,545 --------- --------- Earnings, as defined ...................... $ 944,335 $ 849,887 ========= ========= Ratio of earnings to fixed charges ........ 4.96 3.07 ========= ========= 44