Vectren Utility 10-Q 2012 Q3 Quarterly report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands, Except Ratios)

	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,
	2012		2011		2010		2012		2011
Earnings: (1)
Net income	$	132,614	$	122,874	$	123,854	$	102,504	$	92,764
Income taxes	85,787		82,859		77,100		61,985		59,057
Fixed Charges (See below) (2)	72,977		80,650		81,803		53,785		61,458
Total adjusted earnings	$	291,378	$	286,383	$	282,757	$	218,274	$	213,279
Fixed charges: (2)
Total interest expense	$	72,625	$	80,281	$	81,425	$	53,529	$	61,185
Interest component of rents	352		369		378		256		273
Total fixed charges	$	72,977	$	80,650	$	81,803	$	53,785	$	61,458
Ratio of earnings to fixed charges	4.0		3.6		3.5		4.1		3.5

(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.