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, | ||||||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | ||||||||||||||||
Earnings: (1) | ||||||||||||||||||||
Net income (2) | $ | 103,953 | $ | 91,377 | $ | 95,128 | $ | 69,613 | $ | 57,037 | ||||||||||
Income taxes | 58,407 | 47,691 | 57,500 | 41,786 | 31,070 | |||||||||||||||
Equity in losses (income) of equity investee, net of distributions | - | - | - | - | - | |||||||||||||||
Fixed Charges (See below) (3) | 79,834 | 78,345 | 71,007 | 59,301 | 57,812 | |||||||||||||||
Less: Preferred stock dividend | - | - | 4 | - | - | |||||||||||||||
Total adjusted earnings | $ | 242,194 | $ | 217,413 | $ | 223,631 | $ | 170,700 | $ | 145,919 | ||||||||||
Fixed charges: (3) | ||||||||||||||||||||
Total interest expense | $ | 78,965 | $ | 77,538 | $ | 69,942 | $ | 58,758 | $ | 57,331 | ||||||||||
Interest component of rents | 869 | 807 | 1,061 | 543 | 481 | |||||||||||||||
Preferred stock dividend | - | - | 4 | - | - | |||||||||||||||
Total fixed charges | $ | 79,834 | $ | 78,345 | $ | 71,007 | $ | 59,301 | $ | 57,812 | ||||||||||
Ratio of earnings to fixed charges | 3.0 | 2.8 | 3.1 | 2.9 | 2.5 |
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. |