Exhibit 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio)
Twelve months | Twelve months | Twelve months | Six months | Six months | ||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||
June 30, | December 31, | December 31, | June 30, | June 30, | ||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | ||||||||||||
Earnings: (1) | ||||||||||||||||
Net income (2) | $ | 89,691 | $ | 95,128 | $ | 83,146 | $ | 50,440 | $ | 55,877 | ||||||
Income taxes | 51,472 | 57,500 | 53,035 | 31,119 | 37,147 | |||||||||||
Equity in losses (income) of equity investee, net of distributions | - | - | (128 | ) | - | - | ||||||||||
Fixed Charges (See below) (3) | 75,642 | 71,007 | 68,363 | 38,498 | 33,863 | |||||||||||
Less: Preferred stock dividend | - | 4 | 13 | - | 4 | |||||||||||
Total adjusted earnings | $ | 216,805 | $ | 223,631 | $ | 204,403 | $ | 120,057 | $ | 126,883 | ||||||
Fixed charges: (3) | ||||||||||||||||
Total interest expense | $ | 74,791 | $ | 69,942 | $ | 67,408 | $ | 38,177 | $ | 33,328 | ||||||
Interest component of rents | 851 | 1,061 | 942 | 321 | 531 | |||||||||||
Preferred stock dividend | - | 4 | 13 | - | 4 | |||||||||||
Total fixed charges | $ | 75,642 | $ | 71,007 | $ | 68,363 | $ | 38,498 | $ | 33,863 | ||||||
Ratio of earnings to fixed charges | 2.9 | 3.1 | 3.0 | 3.1 | 3.7 |
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. |