Exhibit 12 | |||||||||
COLORADO INTERSTATE GAS COMPANY | |||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||
(DOLLARS IN MILLIONS) | |||||||||
For the Six Months Ended June 30, | |||||||||
2009 | 2008 | ||||||||
Earnings | |||||||||
Net income | $ | 74 | $ | 76 | |||||
Income from equity investee | (1) | (1) | |||||||
Net income before income from equity investee | $ | 73 | $ | 75 | |||||
Fixed charges | 25 | 21 | |||||||
Distributed income of equity investee | 1 | - | |||||||
Allowance for funds used during construction | (1) | (1) | |||||||
Totals earnings available for fixed charges | 98 | 95 | |||||||
Fixed charges | |||||||||
Interest and debt costs | $ | 25 | $ | 21 | |||||
Ratio of earnings to fixed charges | 3.9 | 4.5 |
For purposes of computing these ratios, earnings means net income before:
- income from equity investee, adjusted to reflect actual distribution from equity investment; and
- fixed charges;
- allowance for funds used during construction.
- interest costs;
- amortization of debt costs; and
- that portion of rental expense which we believe represents an interest factor, which was not material for the six months ended June 30, 2009 and 2008.