Exhibit 12

                       ENRON CORP. AND SUBSIDIARIES
                    COMPUTATION OF RATIO OF EARNINGS TO
                               FIXED CHARGES
                           (Dollars in Millions)
                                (Unaudited)



                                    Six Months
                                      Ended             Year Ended December 31,
                                     6/30/98     1997    1996     1995     1994    1993

                                                                 
Earnings available for fixed charges
 Net income                            $359      $105   $  584   $  520   $  453   $333
 Less:
   Undistributed earnings and
    losses of less than 50% owned
    affiliates                         (23)       (89)     (39)     (14)      (9)   (20)
   Capitalized interest of
    nonregulated companies             (17)       (16)     (10)      (8)      (9)   (26)
 Add:
   Fixed charges(1)                    391        674      454      436      487    471
   Minority interest                    44         80       75       27       30     28
   Income tax expense                  123        (65)     297      310      190    148
     Total                            $877       $689   $1,361   $1,271   $1,142   $934

Fixed Charges
 Interest expense(1)                  $361       $624   $  404   $  386   $  445   $436
 Rental expense representative of
  interest factor                       30         50       50       50       42     35
     Total                            $391       $674   $  454   $  436   $  487   $471

Ratio of earnings to fixed charges    2.24       1.02     3.00     2.92     2.34   1.98

<FN>
(1) Amounts exclude costs incurred on sales of accounts receivables.