EXHIBIT 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.

	Year Ended December 31,
	2002		2001		2000		1999		1998
	(Dollars in millions)
Earnings as defined for fixed charges calculation
Add:
Pretax income from continuing operations(a)	$	357	$	2,375	$	1,596	$	722	$	821
Fixed charges		1,179		837		786		429		276
Distributed income of equity investees		369		156		137		111		94
Deduct:
Preference security dividend requirements of consolidated subsidiaries		99		127		83		52		18
Interest capitalized(b)		176		128		48		31		8
Total earnings	$	1,630	$	3,113	$	2,388	$	1,179	$	1,165
Fixed charges:
Interest on debt, including capitalized portions	$	1,059	$	689	$	687	$	364	$	251
Estimate of interest within rental expense		21		21		16		13		7
Preference security dividend requirements of consolidated subsidiaries		99		127		83		52		18
Total fixed charges	$	1,179	$	837	$	786	$	429	$	276
Ratio of earnings to fixed charges		1.4		3.7		3.0		2.7		4.2

(a) Excludes minority interest expenses and income or loss from equity investees

(b) Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Income