Vectren Utility 10-Q 2012 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,
	2012		2011		2010		2012		2011
Earnings: (1)
Net income	$	134,051	$	122,874	$	123,854	$	76,092	$	64,915
Income taxes	88,040		82,859		77,100		46,756		41,575
Fixed Charges (See below) (2)	75,485		80,650		81,803		35,825		40,990
Total adjusted earnings	$	297,576	$	286,383	$	282,757	$	158,673	$	147,480
Fixed charges: (2)
Total interest expense	$	75,127	$	80,281	$	81,425	$	35,654	$	40,808
Interest component of rents	358		369		378		171		182
Total fixed charges	$	75,485	$	80,650	$	81,803	$	35,825	$	40,990
Ratio of earnings to fixed charges	3.9		3.6		3.5		4.4		3.6

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

(2) Fixed charges consist of total interest, amortization of debt discount, premium and expense, and the estimated portion of interest implicit in rentals.