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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)



                                                                        Nine                              Twelve
                                                                     Months Ended                      Months Ended
                                                                  September 30, 1996                September 30, 1996
                                                                  ------------------                ------------------
                                                                                                     
Fixed Charges as Defined:
   (1)     Interest on Long-Term Debt . . . . . . . . . . . .     $          167,162                $          226,590
   (2)     Other Interest . . . . . . . . . . . . . . . . . .                 10,811                            12,289
   (3)     Amortization of (Premium)
               Discount . . . . . . . . . . . . . . . . . . .                  6,789                             9,077
   (4)     Interest Component of Rentals
           Charged to Operating Expense . . . . . . . . . . .                    779                             1,196
                                                                  ------------------                ------------------
   (5)            Total Fixed Charges   . . . . . . . . . . .     $          185,541                $          249,152
                                                                  ==================                ==================
Earnings as Defined:
   (6)     Net Income . . . . . . . . . . . . . . . . . . . .     $          391,447                $          432,231
                                                                  ------------------                ------------------
   Federal Income Taxes:
   (7)     Current  . . . . . . . . . . . . . . . . . . . . .                210,181                           214,869
   (8)     Deferred (Net) . . . . . . . . . . . . . . . . . .                  4,698                            23,071
                                                                  ------------------                ------------------
   (9)     Total Federal Income Taxes . . . . . . . . . . . .                214,879                           237,940
                                                                  ------------------                ------------------
  (10)     Total Fixed Charges (line 5) . . . . . . . . . . .                185,541                           249,152
                                                                  ------------------                ------------------
  (11)     Earnings Before Income Taxes and
               Fixed Charges (line 6 plus
               line 9 plus line 10) . . . . . . . . . . . . .     $          791,867                $          919,323
                                                                  ==================                ==================
Ratio of Earnings to Fixed Charges
    (line 11 divided by line 5)   . . . . . . . . . . . . . .                   4.27                              3.69

Preferred Dividends Requirements:
  (12)     Preferred Dividends  . . . . . . . . . . . . . . .     $           17,318                $           24,066
  (13)     Less Tax Deduction for
               Preferred Dividends  . . . . . . . . . . . . .                     41                                54
                                                                  ------------------                ------------------
  (14)            Total   . . . . . . . . . . . . . . . . . .                 17,277                            24,012

  (15)     Ratio of Pre-Tax Income to Net
               Income (line 6 plus line 9
               divided by line 6) . . . . . . . . . . . . . .                   1.55                              1.55
                                                                  ------------------                ------------------
  (16)     Line 14 times line 15  . . . . . . . . . . . . . .                 26,779                            37,219
  (17)     Add Back Tax Deduction
               (line 13)  . . . . . . . . . . . . . . . . . .                     41                                54
                                                                  ------------------                ------------------
  (18)     Preferred Dividends Factor . . . . . . . . . . . .     $           26,820                $           37,273
                                                                  ==================                ==================
  (19)     Total Fixed Charges (line 5) . . . . . . . . . . .     $          185,541                $          249,152
  (20)     Preferred Dividends Factor
               (line 18)  . . . . . . . . . . . . . . . . . .                 26,820                            37,273
                                                                  ------------------                ------------------
  (21)            Total   . . . . . . . . . . . . . . . . . .     $          212,361                $          286,425
                                                                  ==================                ==================
Ratio of Earnings to Fixed Charges and
   Preferred Dividends Requirements
   (line 11 divided by line 21)   . . . . . . . . . . . . . .                   3.73                              3.21