Exhibit No. 12



COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines(a).

|                                                                       |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|---------------------------------------------------------------------- |  | ----------------------- | ----- | ---- | - | ----- |  | - | ----- | - | ---- | - | ----- |  | - | -----
|                                                                       |  | Year Ended December 31,
|                                                                       |  | 2005                    |       | 2004 |   | 2003  |  |   | 2002  |   | 2001
|                                                                       |  | (dollars in millions)  
|Earnings as defined for fixed charges calculation                      |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Add:                                                                   |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Pretax income (loss) from continuing operations(b) (e)                 |  | $                       | 3,875 |      | $ | 1,824 |  | $ | (84   | ) |      | $ | 1,518 |  | $ | 2,057
|Fixed charges                                                          |  |                         | 1,148 |      |   | 1,368 |  |   | 1,568 |   |      |   | 1,465 |  |   | 1,082
|Distributed income of equity investees                                 |  |                         | 473   |      |   | 139   |  |   | 263   |   |      |   | 369   |  |   | 156  
|Deduct:                                                                |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 27    |      |   | 31    |  |   | 140   |   |      |   | 170   |  |   | 170  
|Interest capitalized(c)                                                |  |                         | 23    |      |   | 18    |  |   | 58    |   |      |   | 139   |  |   | 101  
|                                                                       |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Total earnings (as defined for the Fixed Charges calculation)          |  | $                       | 5,446 |      | $ | 3,282 |  | $ | 1,549 |   |      | $ | 3,043 |  | $ | 3,024
|                                                                       |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Fixed charges:                                                         |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Interest on debt, including capitalized portions                       |  | $                       | 1,085 |      | $ | 1,299 |  | $ | 1,388 |   |      | $ | 1,255 |  | $ | 878  
|Estimate of interest within rental expense                             |  |                         | 36    |      |   | 38    |  |   | 40    |   |      |   | 40    |  |   | 34   
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 27    |      |   | 31    |  |   | 140   |   |      |   | 170   |  |   | 170  
|                                                                       |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Total fixed charges                                                    |  | $                       | 1,148 |      | $ | 1,368 |  | $ | 1,568 |   |      | $ | 1,465 |  | $ | 1,082
|                                                                       |  |                         |       |      |   |       |  |   |       |   |      |   |       |  |   |      
|Ratio of earnings to fixed charges(e)                                  |  |                         | 4.7   |      |   | 2.4   |  |   | (d    | ) |      |   | 2.1   |  |   | 2.8  



|(a) | Income Statement amounts have been adjusted for discontinued operations.
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|(b) | Excludes minority interest expenses and income or loss from equity investees.
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|(c) | Excludes equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Consolidated Statements of Operations.
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|(d) | Earnings were inadequate to cover fixed charges by $19 million for the year ended December 31, 2003.
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|(e) | Includes pre-tax gains on the sale of TEPPCO GP and LP of approximately $0.9 billion, net of minority interest, in 2005.
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