|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (dollars      in millions)                                      |   | 2007   |   |   | 2006   |   |   | 2005   |   |   | 2004   |   |   | 2003   |   |
| Earnings, as      defined:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations before minority interest |   | $      | 702    |   |   | $      | 523    |   |   | $      | 692    |   |   | $      | 654    |   |   | $ | 771 |   |
| Fixed      charges, as below                                    |   |   | 625    |   |   |   | 651    |   |   |   | 606    |   |   |   | 591    |   |   |   | 590 |   |
| Preferred      dividend requirements                            |   |   | (7     | )      |   |   | (7     | )      |   |   | (7     | )      |   |   | (7     | ) |   |   | (7 | ) |
| Minority      interest                                          |   |   | (9     | )      |   |   | (9     | )      |   |   | 29     |   |   |   | 19     |   |   |   | – |   |
| Income      taxes, as below                                     |   |   | 329    |   |   |   | 199    |   |   |   | (42    | )      |   |   | 62     |   |   |   | (138 | ) |
| Total      earnings, as defined                                 |   | $      | 1,640  |   |   | $      | 1,357  |   |   | $      | 1,278  |   |   | $      | 1,319  |   |   | $ | 1,216 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Charges, as      defined:                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                                 |   | $      | 553    |   |   | $      | 619    |   |   | $      | 566    |   |   | $      | 529    |   |   | $ | 543 |   |
| Other      interest                                             |   |   | 52     |   |   |   | 13     |   |   |   | 21     |   |   |   | 43     |   |   |   | 27 |   |
| Imputed      interest factor in rentals – charged         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| principally      to operating expenses                          |   |   | 13     |   |   |   | 12     |   |   |   | 12     |   |   |   | 12     |   |   |   | 13 |   |
| Preferred      dividend requirements of subsidiaries            |   |   | 7      |   |   |   | 7      |   |   |   | 7      |   |   |   | 7      |   |   |   | 7 |   |
| Total      fixed charges, as defined                            |   | $      | 625    |   |   | $      | 651    |   |   | $      | 606    |   |   | $      | 591    |   |   | $ | 590 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      Taxes:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense (benefit)                               |   | $      | 334    |   |   | $      | 204    |   |   | $      | (37    | )      |   | $      | 67     |   |   | $ | (130 | ) |
| Included      in AFUDC – deferred taxes in                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| book      depreciation                                          |   |   | (5     | )      |   |   | (5     | )      |   |   | (5     | )      |   |   | (5     | ) |   |   | (8 | ) |
| Total      income taxes                                         |   | $      | 329    |   |   | $      | 199    |   |   | $      | (42    | )      |   | $      | 62     |   |   | $ | (138 | ) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Earnings to Fixed Charges                         |   |   | 2.62   |   |   |   | 2.08   |   |   |   | 2.11   |   |   |   | 2.23   |   |   |   | 2.06 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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