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 guidelines(a).



|                                                                       |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|---------------------------------------------------------------------- |  | ----------------------- | ------ | --- | ---- | - | ----- |  | ---- | ----- | ---- | - | ----- |  | - | -----
|                                                                       |  | Year Ended December 31,
|                                                                       |  | 2003                    |        |     | 2002 |   | 2001  |  | 2000 |       | 1999
|                                                                       |  | (dollars in millions)  
|Earnings as defined for fixed charges calculation                      |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Add:                                                                   |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Pretax (loss) income from continuing operations(b)                     |  | $                       | (1,771 | )   |      | $ | 1,803 |  | $    | 3,312 |      | $ | 3,046 |  | $ | 1,323
|Fixed charges                                                          |  |                         | 1,620  |     |      |   | 1,504 |  |      | 1,103 |      |   | 1,099 |  |   | 739  
|Distributed income of equity investees                                 |  |                         | 263    |     |      |   | 369   |  |      | 156   |      |   | 138   |  |   | 111  
|Deduct:                                                                |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 140    |     |      |   | 170   |  |      | 170   |      |   | 126   |  |   | 87   
|Interest capitalized(c)                                                |  |                         | 58     |     |      |   | 193   |  |      | 139   |      |   | 54    |  |   | 37   
|                                                                       |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Total (loss) earnings (as defined for the Fixed Charges calculation)   |  | $                       | (86    | )   |      | $ | 3,313 |  | $    | 4,262 |      | $ | 4,103 |  | $ | 2,049
|                                                                       |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Fixed charges:                                                         |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Interest on debt, including capitalized portions                       |  | $                       | 1,440  |     |      | $ | 1,294 |  | $    | 899   |      | $ | 946   |  | $ | 626  
|Estimate of interest within rental expense                             |  |                         | 40     |     |      |   | 40    |  |      | 34    |      |   | 27    |  |   | 26   
|Preference security dividend requirements of consolidated subsidiaries |  |                         | 140    |     |      |   | 170   |  |      | 170   |      |   | 126   |  |   | 87   
|                                                                       |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Total fixed charges                                                    |  | $                       | 1,620  |     |      | $ | 1,504 |  | $    | 1,103 |      | $ | 1,099 |  | $ | 739  
|                                                                       |  |                         |        |     |      |   |       |  |      |       |      |   |       |  |   |      
|Ratio of earnings to fixed charges                                     |  |                         |       | (d) |      |   | 2.2   |  |      | 3.9   |      |   | 3.7   |  |   | 2.8  

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|(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 $1,706 million for the year ended December 31, 2003.
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