Exhibit 12 VIRGINIA ELECTRIC AND POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (thousands of dollars) For the Year Ended December 31, 1996 1995 1994 1993 1992 ---------- ---------- ---------- ---------- ---------- Net Income $ 457,304 $ 432,844 $ 447,144 $ 509,051 $ 469,521 Add: Income Taxes 243,993 228,785 225,647 257,217 211,295 --------------------------------------------------------------- Total Pretax Net Income $ 701,297 $ 661,629 $ 672,791 $ 766,268 $ 680,816 =============================================================== Fixed Charges: Interest on Long-Term Debt 287,928 302,618 291,864 300,152 300,857 Other Interest 22,380 19,998 7,551 19,121 29,534 Pfd Distribution of Affiliate-Net 7,064 2,374 Estimated Interest Factor of Rents Charged to Operating Expenses, Clearing & Other Accounts 6,291 6,475 7,132 5,660 6,231 --------------------------------------------------------------- Total Fixed Charges $ 323,663 $ 331,465 $ 306,547 $ 324,933 $ 336,622 =============================================================== --------------------------------------------------------------- Earnings as Defined $1,024,960 $ 993,094 $ 979,339 $1,091,201 $1,017,438 =============================================================== Ratio of Earnings to Fixed Charges 3.17 3.00 3.19 3.36 3.02 ===============================================================