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HOUSTON LIGHTING & POWER COMPANY
EXHIBIT 12
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Exhibit 12
HOUSTON LIGHTING & POWER COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(THOUSANDS OF DOLLARS)
Twelve Months Ended December 31,
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1995 1994 1993 1992 1991
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt . . . . . . . $ 244,384 $ 246,533 $ 276,049 $ 311,208 $ 326,722
(2) Other Interest. . . . . . . . . . . . . . 8,117 8,493 12,317 19,548 41,216
(3) Amortization of (Premium) Discount . . . 8,762 8,484 7,234 5,346 4,209
(4) Interest Component of Rentals Charged
to Operating Expense . . . . . . . . . 3,102 3,951 4,449 5,116 5,943
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(5) Total Fixed Charges . . . . . . . . . . . $ 264,365 $ 267,461 $ 300,049 $ 341,218 $ 378,090
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Earnings as Defined:
(6) Net Income . . . . . . . . . . . . . . . $ 480,932 $ 486,764 $ 484,223 $ 509,462 $ 518,899
(7) Cumulative Effect of Change in
Accounting . . . . . . . . . . . . . . 8,200 (94,180)
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(8) Income Before Cumulative Effect of
Change in Accounting . . . . . . . . . 480,932 494,964 484,223 415,282 518,899
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Income Taxes:
(9) Current . . . . . . . . . . . . . . . . . 186,010 181,109 113,394 129,611 143,054
(10) Deferred (Net). . . . . . . . . . . . . . 58,946 68,633 123,077 92,575 83,991
(11) Cumulative Effect of Change in
Accounting. . . . . . . . . . . . . . . 4,415 (48,517)
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(12) Total Income Taxes Before Cumulative
Effect of Change in Accounting . . . . 244,956 254,157 236,471 173,669 227,045
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(13) Total Fixed Charges (line 5). . . . . . . 264,365 267,461 300,049 341,218 378,090
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(14) Earnings Before Income Taxes and Fixed
Charges (line 8 plus line 12 plus
line 13). . . . . . . . . . . . . . . . $ 990,253 $1,016,582 $1,020,743 $ 930,169 $1,124,034
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Ratio of Earnings to Fixed Charges
(line 14 divided by line 5) . . . . . . . . . 3.75 3.80 3.40 2.73 2.97
Preferred Dividend Requirements:
(15) Preferred Dividends . . . . . . . . . . . $ 29,955 $ 33,583 $ 34,473 $ 39,327 $ 46,187
(16) Less Tax Deduction for Preferred
Dividends . . . . . . . . . . . . . . . 54 54 54 56 56
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(17) Total . . . . . . . . . . . . . . . . . . 29,901 33,529 34,419 39,271 46,131
(18) Ratio of Pre-Tax Income to Net Income
(line 8 plus line 12 divided by
line 8) . . . . . . . . . . . . . . . . 1.51 1.51 1.49 1.42 1.44
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(19) Line 17 times line 18 . . . . . . . . . . 45,151 50,629 51,284 55,765 66,429
(20) Add Back Tax Deduction (line 16). . . . . 54 54 54 56 56
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(21) Preferred Dividends Factor . . . . . . . $ 45,205 $ 50,683 $ 51,338 $ 55,821 $ 66,485
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(22) Total Fixed Charges (line 5). . . . . . . $ 264,365 $ 267,461 $ 300,049 $ 341,218 $ 378,090
(23) Preferred Dividends Factor (line 21). . . 45,205 50,683 51,338 55,821 66,485
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(24) Total . . . . . . . . . . . . . . . . . . $ 309,570 $ 318,144 $ 351,387 $ 397,039 $ 444,575
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Ratio of Earnings to Fixed Charges and
Preferred Dividends Requirements
(line 14 divided by line 24) . . . . . . 3.20 3.20 2.90 2.34 2.53