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<TABLE>
Exhibit 12 Computation of ratio of earnings to fixed charges
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Twelve Months Twelve Months Twelve Months Nine Months Year Six Months
Ended Ended Ended Ended Ended Ended
December 31, March 31 March 31 December 31 December 31 June 30,
1996 (a) 1997 (a) 1998 (a) 1998 1999 2000
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Earnings
<S> <C> <C> <C> <C> <C> <C>
Net Income 316,464 322,409 362,240 (196,074) 269,752 233,405
Income Tax 209,257 211,333 232,653 (159,500) 136,362 137,997
Interest on Long-Term Debt 384,198 372,108 351,261 117,388 109,053 65,811
Other Interest Charges 67,130 66,818 57,805 22,800 29,602 21,899
Portion of Rentals Representing
Interest 4,758 3,390 3,309 9,641 23,433 21,566
Adjustment Related to Equity
Investments (24) (22) (5) (1,623) (5,979) (121)
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Earnings Available to Cover
Fixed Charges 981,783 976,036 1,007,263 (207,368) 562,223 480,557
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Fixed Charges
Interest on Long-Term Debt 384,198 372,108 351,261 125,198 120,913 72,504
Other Interest Charges 67,130 66,818 57,805 22,800 29,602 21,899
Portion of Rentals Representing
Interest 4,758 3,390 3,309 9,641 23,433 21,566
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Total Fixed Charges 456,086 442,316 412,375 157,639 173,948 115,969
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Ratio of Earnings to Fixed Charges
2.15 2.21 2.44 (b) 3.23 4.14
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(a) Represents Computation of ratio of earnings to fixed charges
for our predecessor, Long Island Lighting Company.
(b) For the nine months ended December 31, 1998, earnings were
insufficient to cover fixed charges by $365.0 million.
During the nine months ended December 31, 1998, we incurred
the following special charges (after tax): charges
associated with the transaction with the Long Island Power
Authority of $107.9 million; charges associated with the
combination of Long Island Lighting Company's gas and
electric services businesses with KeySpan Energy Corporation
of $83.5 million; an impairment charge of $54.1 million to
write-down the value of proved gas reserves; and a charge of
$13.0 million to establish a not-for-profit philanthropic
foundation.
II-8
