Vectren Utility 10-Q 2007 Q2 Quarterly report

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,
	2007		2006		2005		2007		2006
Earnings: (1)
Net income (2)	$	99,819	$	91,377	$	95,128	$	58,882	$	50,440
Income taxes		51,328		47,691		57,500		34,756		31,119
Fixed Charges (See below) (3)		78,216		78,345		71,007		38,369		38,498
Less:  Preferred stock dividend		-		-		4		-		-
Total adjusted earnings	$	229,363	$	217,413	$	223,631	$	132,007	$	120,057
Fixed charges: (3)
Total interest expense	$	77,368	$	77,538	$	69,942	$	38,007	$	38,177
Interest component of rents		848		807		1,061		362		321
Preferred stock dividend		-		-		4		-		-
Total fixed charges	$	78,216	$	78,345	$	71,007	$	38,369	$	38,498
Ratio of earnings to fixed charges		2.9		2.8		3.1		3.4		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.