EXHIBIT 12
NORTHWEST NATURAL GAS COMPANY
Computation of Ratio of Earnings to Fixed Charges
January 1, 2002 - September 30, 2007
(Thousands, except ratio of earnings to fixed charges)
(Unaudited)
Year Ended December 31, | 12 Months Ended Sept. 30, | Nine Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | 2007 | 2007* | 2006 | |||||||||||||||||
Fixed Charges, as defined: | ||||||||||||||||||||||||
Interest on Long-Term Debt | $ | 34,651 | $ | 34,330 | $ | 33,776 | $ | 33,258 | $ | 32,264 | $ | 34,503 | $ | 25,859 | 26,007 | |||||||||
Other Interest | 4,648 | 2,665 | 2,184 | 2,048 | 1,620 | 5,608 | 2,690 | 1,730 | ||||||||||||||||
Amortization of Debt | ||||||||||||||||||||||||
Discount and Expense | 716 | 808 | 773 | 696 | 799 | 715 | 536 | 537 | ||||||||||||||||
Interest Portion of Rentals | 1,465 | 1,357 | 1,489 | 1,622 | 1,578 | 1,495 | 1,134 | 1,104 | ||||||||||||||||
Total Fixed Charges, as defined | 41,480 | 39,160 | 38,222 | 37,624 | 36,261 | 42,321 | 30,219 | 29,378 | ||||||||||||||||
Dividends - Preference Shares | — | — | — | 294 | 2,280 | — | — | — | ||||||||||||||||
Combined Fixed Charges and Preference Dividends, as defined | $ | 41,480 | $ | 39,160 | $ | 38,222 | $ | 37,918 | $ | 38,541 | $ | 42,321 | $ | 30,219 | $ | 29,378 | ||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Net Income | $ | 63,415 | $ | 58,149 | $ | 50,572 | $ | 45,983 | $ | 43,792 | $ | 74,896 | $ | 44,784 | $ | 33,303 | ||||||||
Taxes on Income | 36,234 | 32,720 | 26,531 | 23,340 | 23,444 | 43,759 | 26,178 | 18,653 | ||||||||||||||||
Fixed Charges, as above | 41,480 | 39,160 | 38,222 | 37,624 | 36,261 | 42,321 | 30,219 | 29,378 | ||||||||||||||||
Preferred Dividend Requirements | — | — | — | — | — | — | — | — | ||||||||||||||||
Total Earnings, as defined | $ | 141,129 | $ | 130,029 | $ | 115,325 | $ | 106,947 | $ | 103,497 | $ | 160,976 | $ | 101,181 | $ | 81,334 | ||||||||
Ratio of Combined Fixed Charges and Preference Dividends to Earnings | 3.40 | 3.32 | 3.02 | 2.82 | 2.69 | 3.80 | 3.35 | 2.77 | ||||||||||||||||
Ratio of Earnings to Fixed Charges | 3.40 | 3.32 | 3.02 | 2.84 | 2.85 | 3.80 | 3.35 | 2.77 | ||||||||||||||||
* | 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. |