EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY CORPORATION
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
|  |  | Three Months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Ended March 31, |  | Years Ended December 31,
(in millions) | 2013 |  | 2012 (a) |  | 2011 |  | 2010 |  | 2009 |  | 2008
Earnings as defined for fixed charges calculation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Pretax income from continuing operations(b) | $ | 928 |  | $ | 2,291 |  | $ | 2,297 |  | $ | 2,097 |  | $ | 1,770 |  | $ | 1,993
| Fixed charges |  | 422 |  |  | 1,510 |  |  | 1,057 |  |  | 1,045 |  |  | 892 |  |  | 883
| Distributed income of equity investees |  | 27 |  |  | 151 |  |  | 149 |  |  | 111 |  |  | 82 |  |  | 195
Deduct: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Preferred dividend requirements of subsidiaries |  | ― |  |  | 3 |  |  | ― |  |  | ― |  |  | ― |  |  | ―
| Interest capitalized(c) |  | 24 |  |  | 177 |  |  | 166 |  |  | 168 |  |  | 102 |  |  | 93
Total earnings | $ | 1,353 |  | $ | 3,772 |  | $ | 3,337 |  | $ | 3,085 |  | $ | 2,642 |  | $ | 2,978
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest on debt, including capitalized portions(b) | $ | 391 |  | $ | 1,420 |  | $ | 1,026 |  | $ | 1,008 |  | $ | 853 |  | $ | 834
| Estimate of interest within rental expense |  | 31 |  |  | 87 |  |  | 31 |  |  | 37 |  |  | 39 |  |  | 49
| Preferred dividend requirements |  | ― |  |  | 3 |  |  | ― |  |  | ― |  |  | ― |  |  | ―
Total fixed charges | $ | 422 |  | $ | 1,510 |  | $ | 1,057 |  | $ | 1,045 |  | $ | 892 |  | $ | 883
Ratio of earnings to fixed charges |  | 3.2 |  |  | 2.5 |  |  | 3.2 |  |  | 3.0 |  |  | 3.0 |  |  | 3.4
Ratio of earnings to fixed charges and preferred dividends combined(d) |  | 3.2 |  |  | 2.5 |  |  | 3.2 |  |  | 3.0 |  |  | 3.0 |  |  | 3.4
(a) | Includes the results of Progress Energy, Inc. beginning on July 2, 2012
(b) | Excludes amounts attributable to noncontrolling interests and income or loss from equity investees.
(c) | Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations.
(d) | For all periods presented, Duke Energy Corporation had no preferred stock outstanding