Exhibit 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratios)
Twelve months | Twelve months | Twelve months | Twelve months | Twelve months | Twelve months | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
June 30, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings: (1) | ||||||||||||||||||||||||
Net income (2) | $ | 116,245 | $ | 107,428 | $ | 111,136 | $ | 106,506 | $ | 91,377 | $ | 95,128 | ||||||||||||
Income taxes | 67,259 | 59,244 | 67,560 | 66,741 | 47,691 | 57,500 | ||||||||||||||||||
Fixed Charges (See below) (3) | 82,001 | 80,107 | 80,611 | 81,145 | 78,345 | 71,007 | ||||||||||||||||||
Less: Preferred stock dividend | - | - | - | - | - | 4 | ||||||||||||||||||
Total adjusted earnings | $ | 265,505 | $ | 246,779 | $ | 259,307 | $ | 254,392 | $ | 217,413 | $ | 223,631 | ||||||||||||
Fixed charges: (3) | ||||||||||||||||||||||||
Total interest expense | $ | 8 1,130 | $ | 79,203 | $ | 79,877 | $ | 80,576 | $ | 77,538 | $ | 69,942 | ||||||||||||
Interest component of rents | 871 | 904 | 734 | 569 | 807 | 1,061 | ||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | 4 | ||||||||||||||||||
Total fixed charges | $ | 82,001 | $ | 80,107 | $ | 80,611 | $ | 81,145 | $ | 78,345 | $ | 71,007 | ||||||||||||
Ratio of earnings to fixed charges | 3.2 | 3.1 | 3.2 | 3.1 | 2.8 | 3.1 |
(1) | For the purposes of computing these ratios, earnings consist of pretax net income before fixed charges and less preferred stock dividends of a consolidated subsidiary. |
(2) | Net income, as defined, is before preferred stock dividend requirement of subsidiary and cumulative effect of change in accounting principle. |
(3) | Fixed charges consist of total interest, amortization of debt discount, premium and expense, the estimated portion of interest implicit in rentals, and preferred stock dividends of a consolidated subsidiary. |