EX-12 7 h54051exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

Exhibit 12
 
CENTERPOINT ENERGY, INCORPORATED AND SUBSIDIARIES
 
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
                                         
    2003     2004     2005     2006     2007(1)  
 
Income from continuing operations
  $ 409     $ 205     $ 225     $ 432     $ 399  
Income taxes for continuing operations
    205       139       153       62       195  
Capitalized interest
    (4 )     (4 )     (4 )     (10 )     (22 )
                                         
      610       340       374       484       572  
                                         
Fixed charges, as defined:
                                       
Interest
    713       777       710       600       626  
Capitalized interest
    4       4       4       10       22  
Distribution on trust preferred securities
    28       —       —       —       —  
Interest component of rentals charged to operating expense
    11       11       12       19       16  
                                         
Total fixed charges
    756       792       726       629       664  
                                         
Earnings, as defined
  $ 1,366     $ 1,132     $ 1,100     $ 1,113     $ 1,236  
                                         
Ratio of earnings to fixed charges
    1.81       1.43       1.51       1.77       1.86  
                                         
 
 
(1) Excluded from the computation of fixed charges is interest income of $4 million in 2007, which is included in income tax expense.