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EXHIBIT 12
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Twelve Months Ended December 31,
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1996 1995 1994 1993 1992
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt .................. $276,242 $279,491 $ 265,494 $ 304,462 $338,771
(2) Other Interest .............................. 33,738 21,586 25,076 15,145 23,323
(3) Preferred Dividends Factor of Subsidiary
(line 12) ................................ 33,619 44,933 51,718 52,399 58,204
(4) Interest Component of Rentals Charged to
Operating Expense ........................ 942 3,102 3,951 4,449 5,116
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(5) Total Fixed Charges ......................... $344,541 $349,112 $ 346,239 $ 376,455 $425,414
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Earnings as Defined:
(6) Income from Continuing Operations
Before Cumulative Effect of
Change in Accounting ..................... $404,944 $397,400 $ 423,985 $ 440,531 $370,031
(7) Income Taxes for Continuing Operations
Before Cumulative Effect of
Change in Accounting ..................... 200,165 199,555 230,424 228,863 177,276
(8) Fixed Charges (line 5) ...................... 344,541 349,112 346,239 376,455 425,414
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(9) Earnings from Continuing Operations
Before Cumulative Effect of Change
in Accounting, Income Taxes and Fixed
Charges .................................. $949,650 $946,067 $1,000,648 $1,045,849 $972,721
Preferred Dividends Factor of Subsidiary:
(10) Preferred Stock Dividends of Subsidiary ..... $ 22,563 $ 29,955 $ 33,583 $ 34,473 $ 39,327
(11) Ratio of Pre-Tax Income from Continuing
Operations to Income from Continuing
Operations(line 6 plus line 7 divided
by line 6) ............................... 1.49 1.50 1.54 1.52 1.48
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(12) Preferred Dividends Factor of Subsidiary
(line 10 times line 11) .................. $ 33,619 $ 44,933 $ 51,718 $ 52,399 $ 58,204
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Ratio of Earnings from Continuing Operations
to Fixed Charges Before Cumulative
Effect of Change in Accounting
(line 9 divided by line 5) ..................... 2.76 2.71 2.89 2.78 2.29