CHESAPEAKE UTILITIES CORPORATION AND SUBSIDIARIES EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES - ---------------------------------------------------------------------------------------------- FOR THE YEARS ENDED DECEMBER 31, 2002 2001 2000 - ---------------------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS . . . . . . . . . . . $ 5,645,153 $ 6,721,537 $ 7,489,201 Add: Income taxes . . . . . . . . . . . . . . . . . . . 3,650,154 4,252,275 4,496,592 Portion of rents representative of interest factor 370,061 275,773 156,680 Interest on indebtedness . . . . . . . . . . . . . 4,968,652 5,178,495 4,398,266 Amortization of debt discount and expense. . . . . 89,387 101,183 111,122 - ---------------------------------------------------------------------------------------------- EARNINGS AS ADJUSTED. . . . . . . . . . . . . . . . . . $14,723,407 $16,529,263 $16,651,861 ============================================================================================== FIXED CHARGES Portion of rents representative of interest factor $ 370,061 $ 275,773 $ 156,680 Interest on indebtedness . . . . . . . . . . . . . 4,968,652 5,178,495 4,398,266 Amortization of debt discount and expense. . . . . 89,387 101,183 111,122 - ---------------------------------------------------------------------------------------------- FIXED CHARGES . . . . . . . . . . . . . . . . . . . . . $ 5,428,100 $ 5,555,451 $ 4,666,068 ============================================================================================== RATIO OF EARNINGS TO FIXED CHARGES. . . . . . . . . . . 2.71 2.98 3.57 ==============================================================================================