Exhibit 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio)
Twelve months | Twelve months | Twelve months | Three months | Three months | ||||||
Ended | Ended | Ended | Ended | Ended | ||||||
March 31, | December 31, | December 31, | March 31, | March 31, | ||||||
2006 | 2005 | 2004 | 2006 | 2005 | ||||||
Earnings: (1) | ||||||||||
Net income (2) | $ 90,418 | $ 95,128 | $ 83,146 | $ 43,440 | $ 48,150 | |||||
Income taxes | 52,803 | 57,500 | 53,035 | 27,230 | 31,926 | |||||
Equity in losses (income) of equity investee, net of distributions | - | - | (128) | - | - | |||||
Fixed Charges (See below) (3) | 74,224 | 71,007 | 68,363 | 20,424 | 17,208 | |||||
Less: Preferred stock dividend | - | 4 | 13 | - | 4 | |||||
Total adjusted earnings | $ 217,445 | $ 223,631 | $ 204,403 | $ 91,094 | $ 97,280 | |||||
Fixed charges: (3) | ||||||||||
Total interest expense | $ 72,981 | $ 69,942 | $ 67,408 | $ 19,977 | $ 16,939 | |||||
Interest component of rents | 1,243 | 1,061 | 942 | 447 | 265 | |||||
Preferred stock dividend | - | 4 | 13 | - | 4 | |||||
Total fixed charges | $ 74,224 | $ 71,007 | $ 68,363 | $ 20,424 | $ 17,208 | |||||
Ratio of earnings to fixed charges | 2.9 | 3.1 | 3.0 | 4.5 | 5.7 |
1. | For the purposes of computing these ratios, earnings consist of pretax net income before income (losses) from equity investees, fixed charges, and less preferred stock dividends of a consolidated subsidiary. |
2. Net income, as defined, is before preferred stock dividend requirement of subsidiary and cumulative effect of change in accounting principle
3. | Fixed charges consist of total interest, amortization of debt discount, premium and expense, the estimated portion of interest implicit in rentals, and preferred stock dividends of a consolidated subsidiary. |