1
                                                                      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)



                                                                        Three                           Twelve
                                                                     Months Ended                     Months Ended
                                                                    March 31, 1996                    March 31, 1996  
                                                                  -------------------               ------------------
                                                                                                      
Fixed Charges as Defined:
   (1)     Interest on Long-Term Debt . . . . . . . . . . . .     $           57,504                $          240,370
   (2)     Other Interest . . . . . . . . . . . . . . . . . .                  2,411                             7,393
   (3)     Amortization of (Premium)
               Discount . . . . . . . . . . . . . . . . . . .                  2,254                             8,895
   (4)     Interest Component of Rentals
           Charged to Operating Expense . . . . . . . . . . .                    384                             2,551
                                                                  ------------------                ------------------
   (5)            Total Fixed Charges   . . . . . . . . . . .     $           62,553                $          259,209
                                                                  ==================                ==================

Earnings as Defined:
   (6)     Net Income (Loss)  . . . . . . . . . . . . . . . .     $           (3,555)               $          434,483
                                                                  ------------------                ------------------

   Federal Income Taxes:
   (7)     Current  . . . . . . . . . . . . . . . . . . . . .                  5,471                           176,493
   (8)     Deferred (Net) . . . . . . . . . . . . . . . . . .                 (6,870)                           48,258
                                                                  ------------------                ------------------
   (9)     Total Federal Income Taxes . . . . . . . . . . . .                 (1,399)                          224,751
                                                                  ------------------                ------------------

  (10)     Fixed Charges (line 5) . . . . . . . . . . . . . .                 62,553                           259,209
                                                                  ------------------                ------------------

  (11)     Earnings Before Income Taxes and
               Fixed Charges (line 6 plus
               line 9 plus line 10) . . . . . . . . . . . . .     $           57,599                $          918,443
                                                                  ==================                ==================

Ratio of Earnings to Fixed Charges
    (line 11 divided by line 5)   . . . . . . . . . . . . . .                   0.92                              3.54

Preferred Dividends Requirements:
  (12)     Preferred Dividends  . . . . . . . . . . . . . . .     $            6,632                $           27,602
  (13)     Less Tax Deduction for
               Preferred Dividends  . . . . . . . . . . . . .                     14                                54
                                                                  ------------------                ------------------
  (14)            Total   . . . . . . . . . . . . . . . . . .                  6,618                            27,548

  (15)     Ratio of Pre-Tax Income (Loss) to Net
               Income (Loss) (line 6 plus line 9
               divided by line 6) . . . . . . . . . . . . . .                   1.39                              1.52
                                                                  ------------------                ------------------
  (16)     Line 14 times line 15  . . . . . . . . . . . . . .                  9,199                            41,873
  (17)     Add Back Tax Deduction
               (line 13)  . . . . . . . . . . . . . . . . . .                     14                                54
                                                                  ------------------                ------------------
  (18)     Preferred Dividends Factor . . . . . . . . . . . .     $            9,213                $           41,927
                                                                  ==================                ==================

  (19)     Fixed Charges (line 5) . . . . . . . . . . . . . .     $           62,553                $          259,209
  (20)     Preferred Dividends Factor
               (line 18)  . . . . . . . . . . . . . . . . . .                  9,213                            41,927
                                                                  ------------------                ------------------

  (21)            Total   . . . . . . . . . . . . . . . . . .     $           71,766                $          301,136
                                                                  ==================                ==================

Ratio of Earnings to Fixed Charges and
   Preferred Dividends
   (line 11 divided by line 21)   . . . . . . . . . . . . . .                   0.80                              3.05