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EXHIBIT 12
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Six Twelve
Months Ended Months Ended
June 30, June 30,
1998 1998
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt............................... $ 209,355 $ 407,106
(2) Other Interest........................................... 47,393 89,412
(3) Capitalized Interest..................................... 4,746 9,034
(4) Distribution on Trust Securities......................... 14,712 29,269
(5) Interest Component of Rentals Charged to
Operating Expense........................................ 5,365 9,952
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(6) Total Fixed Charges...................................... $ 281,571 $ 544,773
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Earnings as Defined:
(7) Income from Continuing Operations........................ $ 13,065 $ 253,092
(8) Income Taxes for Continuing Operations .................. 48,462 183,796
(9) Fixed Charges (line 6)................................... 281,571 544,773
(10) Capitalized Interest.................................... (4,746) (9,034)
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(11) Income from Continuing Operations
Before Income Taxes and Fixed Charges................... $ 338,352 $ 972,627
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Ratio of Earnings to Fixed Charges (line 11 divided
by line 6).................................................. 1.20 1.79
Preferred Dividends Requirements:
(12) Preferred Stock Dividends................................ $ 195 $ 357
(13) Less Tax Deduction for Preferred Dividends............... 27 54
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(14) Total.................................................... $ 168 $ 303
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(15) Ratio of Pre-Tax Income from continuing operations
to Net Income (line 7 plus line 8 divided by line 7)..... 4.71 1.73
(16) Line 14 times line 15.................................... $ 791 $ 524
(17) Add Back Tax Deduction (line 13)......................... 27 54
--------- ---------
(18) Preferred Dividends Factor............................... $ 818 $ 578
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(19) Total Fixed Charges (line 6)............................. $ 281,571 $ 544,773
(20) Preferred Dividends Factor (line 18)..................... 818 578
--------- ---------
(21) Total.................................................... $ 282,389 $ 545,351
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Ratios of Earnings to Fixed Charges and Preferred
Dividends (line 11 divided by line 21)...................... 1.20 1.78
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EXHIBIT 12
NORAM ENERGY CORP. AND SUBSIDIARIES Exhibit 12
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Six Twelve
Months Ended Months Ended
June 30, June 30,
1998 1998
------------ ------------
Income from Continuing Operations............................. $ 58,456 $ 56,066
Income Taxes for Continuing Operations........................ 54,863 65,233
Non-Utility Interest Capitalized.............................. 0 0
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Income from Continuing Operations Before
Income Taxes................................................ 113,319 121,299
Fixed Charges:
Interest.................................................... 52,379 110,534
Distribution on Trust Securities............................ 427 1,609
Interest Component of Rentals Charged to Operating
Expenses.................................................. 4,630 9,455
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Total Fixed Charges.................................... 57,436 121,598
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Income from Continuing Operations Before Income
Taxes and Fixed Charges..................................... $ 170,755 $ 242,897
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Ratio of Earnings to Fixed Charges............................ 2.97 2.00
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