Vectren Utility 10-Q 2010 Q2 Quarterly report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratios)
	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,
	2010		2009		2008		2010		2009
Earnings: (1)
Net income (2)	$	116,245	$	107,428	$	111,136	$	71,611	$	62,794
Income taxes		67,259		59,244		67,560		43,358		35,343
Fixed Charges (See below) (3)		82,001		80,107		80,611		40,780		38,886
Total adjusted earnings	$	265,505	$	246,779	$	259,307	$	155,749	$	137,023
Fixed charges: (3)
Total interest expense	$	81,130	$	79,203	$	79,877	$	40,642	$	38,715
Interest component of rents		871		904		734		138		171
Total fixed charges	$	82,001	$	80,107	$	80,611	$	40,780	$	38,886
Ratio of earnings to fixed charges		3.2		3.1		3.2		3.8		3.5

(1)  For the purposes of computing these ratios, earnings consist of pretax net income before 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.