EXHIBIT 12
NORTHWEST NATURAL GAS COMPANY
Computation of Ratio of Earnings to Fixed Charges
January 1, 2002 – June 30, 2007
(Thousands, except ratio of earnings to fixed charges)
(Unaudited)
Year Ended December 31, | 12 Months 2007 | Six Months 2007* | |||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||
Fixed Charges, as defined: | |||||||||||||||||||||
Interest on Long-Term Debt | $ | 34,651 | $ | 34,330 | $ | 33,776 | $ | 33,258 | $ | 32,264 | $ | 34,659 | $ | 17,424 | |||||||
Other Interest | 4,648 | 2,665 | 2,184 | 2,048 | 1,620 | 4,978 | 1,260 | ||||||||||||||
Amortization of Debt Discount and Expense | 716 | 808 | 773 | 696 | 799 | 717 | 361 | ||||||||||||||
Interest Portion of Rentals | 1,465 | 1,357 | 1,489 | 1,622 | 1,578 | 1,490 | 756 | ||||||||||||||
Total Fixed Charges, as defined | $ | 41,480 | $ | 39,160 | $ | 38,222 | $ | 37,624 | $ | 36,261 | $ | 41,844 | $ | 19,801 | |||||||
Earnings, as defined: | |||||||||||||||||||||
Net Income | $ | 63,415 | $ | 58,149 | $ | 50,572 | $ | 45,983 | $ | 43,792 | $ | 71,080 | $ | 50,692 | |||||||
Taxes on Income | 36,234 | 32,720 | 26,531 | 23,340 | 23,444 | 41,687 | 29,939 | ||||||||||||||
Fixed Charges, as above | 41,480 | 39,160 | 38,222 | 37,624 | 36,261 | 41,844 | 19,801 | ||||||||||||||
Total Earnings, as defined | $ | 141,129 | $ | 130,029 | $ | 115,325 | $ | 106,947 | $ | 103,497 | $ | 154,611 | $ | 100,432 | |||||||
Ratio of Earnings to Fixed Charges | 3.40 | 3.32 | 3.02 | 2.84 | 2.85 | 3.69 | 5.07 | ||||||||||||||
* | A significant part of the business of NW Natural is of a seasonal nature; therefore, the ratio of earnings to fixed charges for the interim period is not necessarily indicative of the results for a full year. |