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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)



                                                                         Six                            Twelve
                                                                     Months Ended                     Months Ended
                                                                     June 30,1996                      June 30, 1996  
                                                                  ------------------                ------------------
                                                                                              
Fixed Charges as Defined:
   (1)     Interest on Long-Term Debt . . . . . . . . . . . .     $          112,458                $          233,925
   (2)     Other Interest . . . . . . . . . . . . . . . . . .                  7,770                            11,963
   (3)     Amortization of Discount . . . . . . . . . . . . .                  4,521                             9,036
   (4)     Interest Component of Rentals
           Charged to Operating Expense . . . . . . . . . . .                    591                             1,768
                                                                  ------------------                ------------------
   (5)            Total Fixed Charges   . . . . . . . . . . .     $          125,340                $          256,692
                                                                  ==================                ==================

Earnings as Defined:
   (6)     Net Income   . . . . . . . . . . . . . . . . . . .     $          146,085                $          434,800
                                                                  ------------------                ------------------

   Federal Income Taxes:
   (7)     Current  . . . . . . . . . . . . . . . . . . . . .                 77,208                           201,610
   (8)     Deferred (Net) . . . . . . . . . . . . . . . . . .                  3,422                            28,091
                                                                  ------------------                ------------------
    (9)    Total Federal Income Taxes . . . . . . . . . . . .                 80,630                           229,701
                                                                  ------------------                ------------------

  (10)     Fixed Charges (line 5) . . . . . . . . . . . . . .                125,340                           256,692
                                                                  ------------------                ------------------

  (11)     Earnings Before Income Taxes and
               Fixed Charges (line 6 plus
               line 9 plus line 10) . . . . . . . . . . . . .     $          352,055                $          921,193
                                                                  ==================                ==================
Ratio of Earnings to Fixed Charges
    (line 11 divided by line 5)   . . . . . . . . . . . . . .                   2.81                              3.59

Preferred Dividends Requirements:
  (12)     Preferred Dividends  . . . . . . . . . . . . . . .     $           11,945                $           25,465
  (13)     Less Tax Deduction for
               Preferred Dividends  . . . . . . . . . . . . .                     27                                54
                                                                  ------------------                ------------------
  (14)            Total   . . . . . . . . . . . . . . . . . .                 11,918                            25,411

  (15)     Ratio of Pre-Tax Income to Net
               Income (line 6 plus line 9
               divided by line 6) . . . . . . . . . . . . . .                   1.55                              1.53
                                                                  ------------------                ------------------
  (16)     Line 14 times line 15  . . . . . . . . . . . . . .                 18,473                            38,879
  (17)     Add Back Tax Deduction
               (line 13)  . . . . . . . . . . . . . . . . . .                     27                                54
                                                                  ------------------                ------------------
  (18)     Preferred Dividends Factor . . . . . . . . . . . .     $           18,500                $           38,933
                                                                  ==================                ==================

  (19)     Fixed Charges (line 5) . . . . . . . . . . . . . .     $          125,340                $          256,692
  (20)     Preferred dividends Factor
               (line 18)  . . . . . . . . . . . . . . . . . .                 18,500                            38,933
                                                                  ------------------                ------------------

  (21)            Total   . . . . . . . . . . . . . . . . . .     $          143,840                $          295,625
                                                                  ==================                ==================

Ratio of Earnings to Fixed Charges and
   Preferred Dividends
   (line 11 divided by line 21)   . . . . . . . . . . . . . .                   2.45                              3.12