Exhibit 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio)
60; Year ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings: (1) | ||||||||||||||||||||
Net income (2) | $ | 106,506 | $ | 91,377 | $ | 95,128 | $ | 83,146 | $ | 85,587 | ||||||||||
Income taxes | 66,741 | 47,691 | 57,500 | 53,035 | 51,582 | |||||||||||||||
Equity in (income) losses of equity investees, net of distributions | - | - | - | (128 | ) | 511 | ||||||||||||||
Fixed Charges (See below) (3) | 81,145 | 78,345 | 71,007 | 68,363 | 66,699 | |||||||||||||||
Less: Preferred stock dividend | - | - | 4 | 13 | 23 | |||||||||||||||
Total adjusted earnings | $ | 254,392 | $ | 217,413 | $ | 223,631 | $ | 204,403 | $ | 204,356 | ||||||||||
Fixed charges: (3) | ||||||||||||||||||||
Total interest expense | $ | 80,576 | $ | 77,538 | $ | 69,942 | $ | 67,408 | $ | 66,135 | ||||||||||
Interest component of rents | 569 | 807 | 1,061 | 942 | 541 | |||||||||||||||
Preferred stock dividend | - | - | 4 | 13 | 23 | |||||||||||||||
Total fixed charges | $ | 81,145 | $ | 78,345 | $ | 71,007 | $ | 68,363 | $ | 66,699 | ||||||||||
Ratio of earnings to fixed charges | 3.1 | 2.8 | 3.1 | 3.0 | 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. |