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, | ||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | ||||||||||||
Earnings: (1) | ||||||||||||||||
Net income (2) | $ | 98,822 | $ | 91,377 | $ | 95,128 | $ | 50,885 | $ | 43,440 | ||||||
Income taxes | 49,756 | 47,691 | 57,500 | 29,295 | 27,230 | |||||||||||
Equity in losses (income) of equity investee, net of distributions | - | - | - | - | - | |||||||||||
Fixed Charges (See below) (3) | 77,539 | 78,345 | 71,007 | 19,618 | 20,424 | |||||||||||
Less: Preferred stock dividend | - | - | 4 | - | - | |||||||||||
Total adjusted earnings | $ | 226,117 | $ | 217,413 | $ | 223,631 | $ | 99,798 | $ | 91,094 | ||||||
Fixed charges: (3) | ||||||||||||||||
Total interest expense | $ | 76,998 | $ | 77,538 | $ | 69,942 | $ | 19,437 | $ | 19,977 | ||||||
Interest component of rents | 541 | 807 | 1,061 | 181 | 447 | |||||||||||
Preferred stock dividend | - | - | 4 | - | - | |||||||||||
Total fixed charges | $ | 77,539 | $ | 78,345 | $ | 71,007 | $ | 19,618 | $ | 20,424 | ||||||
Ratio of earnings to fixed charges | 2.9 | 2.8 | 3.1 | 5.1 | 4.5 |
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. |