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EXHIBIT 12
ENRON CORP. AND SUBSIDIARIES
Computation of Ratio of Earnings to
COMBINED Fixed Charges AND
PREFERRED STOCK DIVIDENDS
(Dollars in Millions)
(Unaudited)
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<CAPTION>
Three Months
Ended Year Ended December 31,
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3/31/00 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
Earnings available for fixed charges
Net income before cumulative
effect of accounting changes $ 338 $1,024 $ 703 $105 $ 584 $ 520
Less:
Undistributed earnings and
losses of less than 50% owned
affiliates (17) (12) (44) (89) (39) (14)
Capitalized interest of
nonregulated companies (15) (61) (66) (16) (10) (8)
Add:
Fixed charges(a) 258 948 809 674 454 436
Minority interests 35 135 77 80 75 27
Income tax expense (benefit) 88 137 204 (65) 297 310
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Total $ 687 $2,171 $1,683 $689 $1,361 $1,271
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Preferred dividend requirements $ 20 $ 66 $ 17 $ 17 $ 16 $ 16
Ratio of income before provision
for income taxes to net income(b) 1.21 1.10 1.25 1.21 1.46 1.55
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Preferred dividend factor on a
pretax basis $ 24 $ 73 $ 21 $ 21 $ 23 $ 25
Fixed Charges
Interest expense(a) 247 900 760 624 404 386
Rental expense representative
of interest factor 11 48 49 50 50 50
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Total $ 282 $1,021 $ 830 $695 $ 477 $ 461
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Ratio of earnings to combined
fixed charges and preferred
dividends 2.43 2.13 2.03 (c) 2.85 2.76
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(a) Amounts exclude costs incurred on sales of accounts receivables.
(b) Represents net income before provision for income taxes dividend by net
income, which adjusts dividends on preferred stock to a pretax basis.
(c) For the year ended December 31, 1997, earnings were inadequate to cover
combined fixed charges and preferred stock dividends by $6 million.
