Vectren Utility 10-Q 2007 Q3 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		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.