EX-12
 49

          SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                   For the Five Years Ended December 31, 1994

                        1994      1993       1992     1991      1990
                                  (in thousands)
Earnings as Defined
                                                 
Net income              $41,025   $39,588    $36,758  $38,513   $37,691 
Add:
   Income Taxes:
   Current:
   Federal               15,257     5,880     13,049   14,176    12,025 
   State                  2,519     1,310      2,444    2,436     1,642 
   Deferred, net:
   Federal                  (80)    9,682        550    2,996     5,597 
   State                    314     1,581        439      690     1,532 
   Deferred investment
    tax credit, net      (1,846)   (1,868)    (1,873)  (1,877)   (1,883)
   Interest on long-term
    debt                 18,604    18,437     17,768   18,238    18,249 
   Amortization of premium,
    discount and expense
    on debt                 852       773        446      740       667 
   Other interest         1,589       747        461      719       572 
   Interest component of
    rent expense <F1>       416       405        391      382       369 

   Earnings as defined  $78,650   $76,535    $70,433  $77,013   $76,461 

Fixed Charges as Defined

   Interest on long-term
    debt                $18,604   $18,437    $17,768  $18,238   $18,249 
   Amortization of premium,
    discount and expense
    on debt                 852       773        446      740       667 
   Other interest         1,589       747        461      719       572 
   Interest component of
    rent expense <F1>       416       405        391      382       369 

   Fixed charges as
    defined             $21,461   $20,362    $19,066  $20,079   $19,857 

Ratio of Earnings to
 Fixed Charges  <F2>       3.67      3.76       3.69     3.84      3.85 
<FN>
NOTES:

<F1> One-third of rentals represents a reasonable approximation of the
interest factor.
<F2> The ratios shown above do not reflect the fixed charge component in
the Company's power contract with OVEC (see "Electric Business", page 2). 
Inclusion of the component in the computation would not have a significant
effect on the ratios.
<F3> Periods beginning in 1992 reflect the results of Lincoln Natural Gas
Company, Inc., acquired June 30, 1994.
</FN>