Chesapeake Utilities Corporation and Subsidiaries Exhibit 12 Ratio of Earnings to Fixed Charges - -------------------------------------------------------------------------------------- For the Years Ended December 31, 1998 1997 1996 - -------------------------------------------------------------------------------------- Income from continuing operations $ 5,302,586 $ 5,867,612 $ 7,781,933 Add: Income taxes 3,225,744 3,704,196 4,086,616 Portion of rents representative of interest 130,717 167,029 155,916 Interest on indebtedness 3,256,415 3,224,606 2,884,858 Amortization of debt discount and expense 123,335 119,401 120,345 - -------------------------------------------------------------------------------------- Earnings as adjusted $12,038,797 $13,082,844 $15,029,668 ====================================================================================== Fixed Charges Portion of rents representative of interest $ 130,717 $ 167,029 $ 155,916 Interest on indebtedness 3,256,415 3,224,606 2,884,858 Amortization of debt discount and expense 123,335 119,401 120,345 - -------------------------------------------------------------------------------------- Fixed Charges $ 3,510,467 $ 3,511,036 $ 3,161,119 ====================================================================================== Ratio of Earnings to Fixed Charges 3.43 3.73 4.75 ======================================================================================