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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
                                                                      -----------          -----------

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
                                                                      -----------          -----------

       Total Fixed Charges....................................             57,436              121,598
                                                                      -----------          -----------


Income from Continuing Operations Before Income
  Taxes and Fixed Charges.....................................        $   170,755          $   242,897
                                                                      ===========          ===========

Ratio of Earnings to Fixed Charges............................               2.97                 2.00
                                                                      ===========          ===========