EXHIBIT 12.1



RELIANT ENERGY, INC. AND SUBSIDIARIES

RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES



|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|------------------------------------------------------------------ |  | ------------------------------------ | -------- | - | ------- | - | -------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                   |  | For the Year Ended December 31,      |         
|                                                                   |  | 2004(1)                              |          |   | 2003(2) |   |          | 2002 |  |   | 2001    |   |  | 2000 |        
|                                                                   |  | (in thousands, except ratio amounts) |         
|Fixed charges:                                                     |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Interest expense                                                   |  | $                                    | 465,845  |   |         | $ | 447,260  |      |  | $ | 222,925 |   |  | $    | 16,152  |   |  | $ | 7,019   |  
|Interest expense  affiliated companies, net(3)                    |  |                                      |         |   |         |   |         |      |  |   |        |   |  |      |        |   |  |   | 172,311 |  
|Capitalized interest                                               |  |                                      | 45,784   |   |         |   | 84,225   |      |  |   | 22,038  |   |  |      | 58,720  |   |  |   | 34,625  |  
|Interest within rent expense                                       |  |                                      | 70,715   |   |         |   | 66,359   |      |  |   | 54,344  |   |  |      | 35,174  |   |  |   | 10,818  |  
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Total fixed charges                                                |  | $                                    | 582,344  |   |         | $ | 597,844  |      |  | $ | 299,307 |   |  | $    | 110,046 |   |  | $ | 224,773 |  
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Earnings from continuing operations:                               |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|(Loss) income from continuing operations before income taxes       |  | $                                    | (269,000 | ) |         | $ | (790,971 | )    |  | $ | 230,790 |   |  | $    | 751,498 |   |  | $ | 245,880 |  
|Loss (income) of equity investments of unconsolidated subsidiaries |  |                                      | 9,478    |   |         |   | 1,652    |      |  |   | (17,836 | ) |  |      | (6,771  | ) |  |   | (42,860 | )
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Subtotal                                                           |  |                                      | (259,522 | ) |         |   | (789,319 | )    |  |   | 212,954 |   |  |      | 744,727 |   |  |   | 203,020 |  
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Plus                                                              |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Fixed charges from above                                           |  |                                      | 582,344  |   |         |   | 597,844  |      |  |   | 299,307 |   |  |      | 110,046 |   |  |   | 224,773 |  
|Amortization of capitalized interest                               |  |                                      | 7,692    |   |         |   | 5,525    |      |  |   | 3,754   |   |  |      | 2,408   |   |  |   | 852     |  
|Distributed income of equity investees                             |  |                                      | 3,850    |   |         |   | 4,400    |      |  |   | 2,975   |   |  |      | 27,159  |   |  |   | 17,929  |  
|Less                                                              |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Capitalized interest                                               |  |                                      | (45,784  | ) |         |   | (84,225  | )    |  |   | (22,038 | ) |  |      | (58,720 | ) |  |   | (34,625 | )
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|                                                                   |  | $                                    | 288,580  |   |         | $ | (265,775 | )    |  | $ | 496,952 |   |  | $    | 825,620 |   |  | $ | 411,949 |  
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Ratio of earnings from continuing operations to fixed charges      |  |                                      |         |   |         |   |         |      |  |   | 1.66    |   |  |      | 7.50    |   |  |   | 1.83    |  
|                                                                   |  |                                      |          |   |         |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  

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|(1) | For 2004, our earnings were insufficient to cover our fixed charges by $294 million.
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|(2) | For 2003, our earnings were insufficient to cover our fixed charges by $864 million.
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|(3) | If the net amount for the applicable period netted to interest income, it is excluded from this schedule for purposes of calculating fixed charges.
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