Exhibit 12 ENRON CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in Millions) (Unaudited) Nine Months Ended Year Ended December 31, 9/30/99 1998 1997 1996 1995 1994 Earnings available for fixed charges Net income before cumulative effect of accounting changes $ 765 $ 703 $105 $ 584 $ 520 $ 453 Less: Undistributed earnings and losses of less than 50% owned affiliates (19) (44) (89) (39) (14) (9) Capitalized interest of nonregulated companies (51) (66) (16) (10) (8) (9) Add: Fixed charges(a) 776 809 674 454 436 487 Minority interests 94 77 80 75 27 30 Income tax expense 99 204 (65) 297 310 190 Total $1,664 $1,683 $689 $1,361 $1,271 $1,142 Fixed Charges Interest expense(a) $ 740 $ 760 $624 $ 404 $ 386 $ 445 Rental expense representative of interest factor 36 49 50 50 50 42 Total $ 776 $ 809 $674 $ 454 $ 436 $ 487 Ratio of earnings to fixed charges 2.14 2.08 1.02 3.00 2.92 2.34 <FN> (a) Amounts exclude costs incurred on sales of accounts receivables.