EXHIBIT 12

                    INDIANA GAS COMPANY, INC.
                    AND SUBSIDIARY COMPANIES

        COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                  (In Thousands, Except Ratios)

                      Twelve Mos.
                         Ended               Year Ended December  31
                       03/31/00(1)    1999    1998     1997(2)    1996     1995
                                                        
Earnings:
 Net income              $14,575    $29,742  $26,825  $13,648   $36,121   $40,258
   Income taxes            8,979     16,734   14,058    7,813    21,637    24,110
   Fixed charges
    (see below)           18,137     17,691   16,133   17,782    17,154    16,465
Total adjusted earnings  $41,691    $64,167  $57,016  $39,243   $74,912   $80,833


Fixed charges:
 Total interest expense  $17,837    $16,969  $15,802  $17,049   $16,200   $15,528
 Interest component
     of rents                300        722      331      733       954       937
Total fixed charges      $18,137    $17,691  $16,133  $17,782   $17,154   $16,465

Ratio of earnings to
     fixed charges           2.3        3.6      3.5      2.2       4.4       4.9




(1) Indiana Gas' ratio of earnings to fixed charges for the
    twelve month period excluding the merger transaction costs of
    $13.4 million would have been 3.0.

(2) Reflects the recording of restructuring costs in
    fiscal 1997 of $39.5 million. Indiana Gas' ratio
    of earnings to fixed charges for 1997 before
    restructuring costs would have been 4.4.