EXHIBIT 12



COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelinesa.



|                                                                       |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|---------------------------------------------------------------------- |  | ----------------------- | ----- | ---- | - | ------ | ---- |  | ---- | ----- | ---- | - | ----- |  | - | -----
|                                                                       |  | Year Ended December 31,
|                                                                       |  | 2004                    |       | 2003 |   |        | 2002 |  | 2001 |       | 2000
|                                                                       |  | (dollars in millions)  
|Earnings as defined for fixed charges calculation                      |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Add:                                                                   |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Pretax income (loss) from continuing operationsb                       |  | $                       | 1,806 |      | $ | (1,772 | )    |  | $    | 1,804 |      | $ | 3,309 |  | $ | 3,030
|Fixed charges                                                          |  |                         | 1,437 |      |   | 1,620  |      |  |      | 1,504 |      |   | 1,103 |  |   | 1,099
|Distributed income of equity investees                                 |  |                         | 139   |      |   | 263    |      |  |      | 369   |      |   | 156   |  |   | 138  
|Deduct:                                                                |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 31    |      |   | 140    |      |  |      | 170   |      |   | 170   |  |   | 126  
|Interest capitalizedc                                                  |  |                         | 18    |      |   | 58     |      |  |      | 193   |      |   | 139   |  |   | 54   
|                                                                       |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Total earnings (loss) (as defined for the Fixed Charges calculation)   |  | $                       | 3,333 |      | $ | (87    | )    |  | $    | 3,314 |      | $ | 4,259 |  | $ | 4,087
|                                                                       |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Fixed charges:                                                         |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Interest on debt, including capitalized portions                       |  | $                       | 1,368 |      | $ | 1,440  |      |  | $    | 1,294 |      | $ | 899   |  | $ | 946  
|Estimate of interest within rental expense                             |  |                         | 38    |      |   | 40     |      |  |      | 40    |      |   | 34    |  |   | 27   
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 31    |      |   | 140    |      |  |      | 170   |      |   | 170   |  |   | 126  
|                                                                       |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Total fixed charges                                                    |  | $                       | 1,437 |      | $ | 1,620  |      |  | $    | 1,504 |      | $ | 1,103 |  | $ | 1,099
|                                                                       |  |                         |       |      |   |        |      |  |      |       |      |   |       |  |   |      
|Ratio of earnings to fixed charges                                     |  |                         | 2.3   |      |   |       | (d)  |  |      | 2.2   |      |   | 3.9   |  |   | 3.7  



|a | Consolidated Statement of Operations 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 $1,707 million for the year ended December 31, 2003.
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