CenterPoint Energy 2008 Annual Report Download - page 137

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Exhibit 12
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
2004
2005
2006
2007 (1)
2008 (1)
Income from continuing operations......................
$ 205
$ 225
$ 432
$ 399
$ 447
Income taxes for continuing operations ...............
139
153
62
195
278
Capitalized interest ................................................
(4)
(4)
(10)
(22)
(20)
340
374
484
572
705
Fixed charges, as defined:
Interest ................................................................
777
710
600
626
609
Capitalized interest ............................................
4
4
10
22
20
Interest component of rentals charged to
operating expense ..........................................
11
12
19
16
15
Total fixed charges ............................................
792
726
629
664
644
Earnings, as defined ..............................................
$ 1,132
$ 1,100
$ 1,113
$ 1,236
$ 1,349
Ratio of earnings to fixed charges ........................
1.43
1.51
1.77
1.86
2.09
________
(1) Excluded from the computation of fixed charges for the years ended December 31, 2007 and
2008 is interest income of $4 million and interest expense of $9 million, respectively, which is
included in income tax expense.