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, 1997                    March 31, 1997  
                                                                  -------------------               ------------------
                                                                                                   
Fixed Charges as Defined:
   (1)     Interest on Long-Term Debt . . . . . . . . . . . .     $           52,533                $          216,894
   (2)     Other Interest . . . . . . . . . . . . . . . . . .                  2,212                            12,565
   (3)     Distributions on Trust Securities. . . . . . . . .                  4,519                             4,519
   (4)     Amortization of (Premium)
               Discount . . . . . . . . . . . . . . . . . . .                  2,294                             9,099
   (5)     Interest Component of Rentals
           Charged to Operating Expense . . . . . . . . . . .                    211                               768
                                                                  ------------------                ------------------
   (6)            Total Fixed Charges   . . . . . . . . . . .     $           61,769                $          243,845
                                                                  ==================                ==================

Earnings as Defined:
   (7)     Net Income (Loss)  . . . . . . . . . . . . . . . .     $           63,164                $          496,136
                                                                  ------------------                ------------------

   Federal Income Taxes:
   (8)     Current  . . . . . . . . . . . . . . . . . . . . .                 29,254                           231,079
   (9)     Deferred (Net) . . . . . . . . . . . . . . . . . .                  3,876                            35,859
                                                                  ------------------                ------------------
  (10)     Total Federal Income Taxes . . . . . . . . . . . .                 33,130                           266,938
                                                                  ------------------                ------------------

  (11)     Fixed Charges (line 6) . . . . . . . . . . . . . .                 61,769                           243,845
                                                                  ------------------                ------------------

  (12)     Earnings Before Income Taxes and
               Fixed Charges (line 7 plus
               line 10 plus line 11)  . . . . . . . . . . . .     $          158,063                $        1,006,919
                                                                  ==================                ==================

Ratio of Earnings to Fixed Charges
    (line 12 divided by line 6)   . . . . . . . . . . . . . .                   2.56                              4.13

Preferred Dividends Requirements:
  (13)     Preferred Dividends  . . . . . . . . . . . . . . .     $            2,125                $           18,055
  (14)     Less Tax Deduction for
               Preferred Dividends  . . . . . . . . . . . . .                     14                                54
                                                                  ------------------                ------------------
  (15)            Total   . . . . . . . . . . . . . . . . . .                  2,111                            18,001

  (16)     Ratio of Pre-Tax Income (Loss) to Net
               Income (Loss) (line 7 plus line 10
               divided by line 7) . . . . . . . . . . . . . .                   1.52                              1.54
                                                                  ------------------                ------------------
  (17)     Line 15 times line 16  . . . . . . . . . . . . . .                  3,209                            27,722
  (18)     Add Back Tax Deduction
               (line 14)  . . . . . . . . . . . . . . . . . .                     14                                54
                                                                  ------------------                ------------------
  (19)     Preferred Dividends Factor . . . . . . . . . . . .     $            3,223                $           27,776
                                                                  ==================                ==================

  (20)     Fixed Charges (line 6) . . . . . . . . . . . . . .     $           61,769                $          243,845
  (21)     Preferred Dividends Factor
               (line 19)  . . . . . . . . . . . . . . . . . .                  3,223                            27,776
                                                                  ------------------                ------------------

  (22)            Total   . . . . . . . . . . . . . . . . . .     $           64,992                $          271,621
                                                                  ==================                ==================

Ratio of Earnings to Fixed Charges and
   Preferred Dividends
   (line 12 divided by line 22)   . . . . . . . . . . . . . .                   2.43                              3.71