NiSource (NI) 10-K 2007 FY Annual report

NiSource Inc.

Exhibit 12

Ratio of Earnings to Fixed Charges
The ration of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines (a).

				Year ended December 31,
	2007			2006			2005			2004			2003
Earnings as defined in item 503(d) of Regulation S-K:
Add:
Pretax income from continuing Operations (b)	$	469,933,220		$	492,649,569		$	429,078,302		$	674,773,186		$	664,707,185
Fixed Charges		435,677,445			419,697,994			447,970,179			430,982,525			494,982,336
Amortization of capitalized interest (c)		—			—			—			—			—
Distributed income of equity investees		44,134,385			21,974,949			3,384,404			3,793,299			2,908,900
Share of pre-tax losses of equity investees for which charges arising guarantees are included in fixed charges		—			—			—			—			—
Deduct:
Interest capitalized (c)		—			—			—			—			—
Preference security dividend requirements of consolidated subsidiaries (d)		—			1,662,827			6,463,063			6,833,674			6,980,690
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges		(3,743	)		(8,288	)		(11,546	)		(22,187	)		2,544,375
	$	949,748,793		$	932,667,973		$	873,981,368		$	1,102,737,523		$	1,153,073,356
Fixed charges as defined in item 503(d) of Regulation S-K:
Interest on long-term debt	$	353,404,387		$	346,666,685		$	385,598,925		$	349,174,481		$	403,595,874
Other interest		57,114,415			44,175,068			20,138,286			32,624,007			44,636,175
Capitalized interest during period (c)								—			—			—
Amortization of premium, reacquisition premium, discount and expense on debt, net		7,322,778			7,693,483			17,547,706			21,571,279			18,944,887
Interest portion of rent expense		17,839,608			19,508,219			18,233,745			20,801,271			18,280,335
Minority Interest		(3,743	)		(8,288	)		(11,546	)		(22,187	)		2,544,375
	$	435,677,445		$	418,035,167		$	441,507,116		$	424,148,851		$	488,001,646
Plus preferred stock dividends:
Preferred dividend requirements of subsidiary	$	—		$	1,076,298		$	4,233,611		$	4,380,513		$	4,502,884
Preferred dividend requirements factor		0.64			0.65			0.66			0.64			0.65
Preference security dividend requirements of consolidated subsidiaries (d)		—			1,662,827			6,463,063			6,833,674			6,980,690
Fixed charges		435,677,445			418,035,167			441,507,116			424,148,851			488,001,646
	$	435,677,445		$	419,697,994		$	447,970,179		$	430,982,525		$	494,982,336
Ratio of earnings to fixed charges		2.18			2.22			1.95			2.56			2.33

(a)	Income Statement amounts have been adjusted for discontinued operations.
(b)	Excludes adjustment for minority interest in consolidated subsidiaries or income or loss from equity investees.
(c)	NiSource is a public utility following SFAS 71 and therefore does not add amortization of capitalized interest or subtract interest capitalized in determining earnings, nor reduces fixed charges for Allowance for Funds Used During Construction.
(d)	Preferred dividends, as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one minus the effective income tax rate applicable to continuing operations.