<PAGE>   1
                                                                      EXHIBIT 12

                   CENTRAL LOUISIANA ELECTRIC COMPANY, INC.
                          COMPUTATION OF EARNINGS TO
                        FIXED CHARGES AND EARNINGS TO
             COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

<TABLE>
<CAPTION>

                                                                   FOR THE YEARS ENDED DECEMBER 31,
                                                                    (In thousands, except ratios)



                                                        1996        1995        1994         1993         1992
                                                    ----------   ---------   ---------    ---------     ---------
<S>                                                 <C>          <C>         <C>          <C>           <C>               
Earnings from continuing operations                 $   52,135   $  48,703   $  45,043    $  41,812     $  45,239         
Income taxes                                            26,154      25,229      19,901       19,565        18,595         
                                                    ----------   ---------   ---------    ---------     ---------         
Earnings from continuing operations                                                                                       
   before income taxes                                  78,289      73,932      64,944       61,377        63,834         
                                                    ----------   ---------   ---------    ---------     ---------         
                                                                                                                          
Fixed charges:                                                                                                            
   Interest, long-term debt                             25,134      24,516      23,194       22,089        26,142         
   Interest, other                                       2,359       3,482       2,542        2,750         1,604         
   Amortization of debt expense and                                                                                       
      premium, net                                       1,107       1,234       1,223        1,402         1,282         
   Portion of rental expense                                                                                              
      representative of interest                                                                                          
      factor                                               445         457         707          485           547         
                                                    ----------   ---------   ---------    ---------     ---------         
         Total fixed charges                        $   29,045   $  29,689   $  27,666    $  26,726     $  29,575         
                                                    ----------   ---------   ---------    ---------     ---------         
                                                                                                                          
Earnings from continuing operations                                                                                       
   before income taxes and                                                                                                
   fixed charges                                    $  107,334   $ 103,621   $  92,610    $  88,103     $  93,409         
                                                    ==========   =========   =========    =========     =========         
                                                                                                                          
Ratio of earnings to fixed charges                       3.70x       3.49x       3.35x        3.30x         3.16x         
                                                    ==========   =========   =========    =========     =========         
Fixed charges from above                            $   29,045   $  29,689   $  27,666    $  26,726     $  29,575         
Preferred dividends                                      2,909       2,960       2,966        3,008         3,440         
                                                    ----------   ---------   ---------    ---------     ---------         
   Total fixed charges and preferred                                                                                      
     stock dividends                                $   31,954   $  32,649   $  30,632    $  29,734     $  33,015         
                                                    ==========   =========   =========    =========     =========         
                                                                                                                          
Ratio of earnings to combined                                                                                             
   fixed charges and preferred                                                                                            
   stock dividends                                       3.36x       3.17x       3.02x        2.96x         2.83x         
                                                    ==========   =========   =========    =========     =========         
</TABLE>