Exhibit 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio)
Twelve months | Twelve months | Twelve months | Nine months | Nine months | ||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||
September 30, | December 31, | December 31, | September 30, | September 30, | ||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | ||||||||||||
Earnings: (1) | ||||||||||||||||
Net income (2) | $ | 87,309 | $ | 95,128 | $ | 83,146 | $ | 57,037 | $ | 64,856 | ||||||
Income taxes | 45,864 | 57,500 | 53,035 | 31,070 | 42,706 | |||||||||||
Equity in losses (income) of equity investee, net of distributions | - | - | (128 | ) | - | - | ||||||||||
Fixed Charges (See below) (3) | 77,265 | 71,007 | 68,363 | 57,812 | 51,411 | |||||||||||
Less: Preferred stock dividend | - | 4 | 13 | - | 4 | |||||||||||
Total adjusted earnings | $ | 210,438 | $ | 223,631 | $ | 204,403 | $ | 145,919 | $ | 158,969 | ||||||
Fixed charges: (3) | ||||||||||||||||
Total interest expense | $ | 76,518 | $ | 69,942 | $ | 67,408 | $ | 57,331 | $ | 50,755 | ||||||
Interest component of rents | 747 | 1,061 | 942 | 481 | 652 | |||||||||||
Preferred stock dividend | - | 4 | 13 | - | 4 | |||||||||||
Total fixed charges | $ | 77,265 | $ | 71,007 | $ | 68,363 | $ | 57,812 | $ | 51,411 | ||||||
Ratio of earnings to fixed charges | 2.7 | 3.1 | 3.0 | 2.5 | 3.1 |
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. |