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