ELIZABETHTOWN WATER COMPANY AND SUBSIDIARY Exhibit 12 (b)
Computation of Ratio of Earnings to Fixed Charges
and Preferred Dividends
1996 1995 1994 1993 1992
EARNINGS:
Income before preferred stock dividends $ 16,755,164 $ 17,325,144 $ 14,223,142 $ 14,832,519 $ 12,149,343
Federal income taxes 8,822,537 9,161,510 7,413,995 7,916,794 6,021,464
Interest charges 12,803,562 11,114,496 10,402,060 11,437,710 10,623,801
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Earnings available to cover fixed charges $ 38,381,263 $ 37,601,150 $ 32,039,197 $ 34,187,023 $ 28,794,608
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FIXED CHARGES AND PREFERRED DIVIDENDS:
Interest on long-term debt 13,011,069 10,892,129 10,774,008 11,527,301 10,516,521
Preferred dividend requirement (1) 1,241,032 1,242,929 1,299,326 1,610,429 1,570,446
Other interest 2,640,117 2,343,903 175,507 77,921 514,122
Amortization of debt discount - net 361,012 323,557 319,646 224,383 209,631
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Total fixed charges $ 17,253,230 $ 14,802,518 $ 12,568,487 $ 13,440,034 $ 12,810,720
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Ratio of Earnings to Fixed Charges
and Preferred Dividends 2.22 2.54 2.55 2.54 2.25
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(1) Preferred Dividend Requirement:
Preferred dividends 813,000 813,000 854,047 1,050,000 1,050,000
Effective tax rate 34.49% 34.59% 34.27% 34.80% 33.14%
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Preferred dividend requirement $ 1,241,032 $ 1,242,929 $ 1,299,326 $ 1,610,429 $ 1,570,446
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<FN>
Earnings to Fixed Charges and Preferred Dividends represents the sum of
Income Before Preferred Stock Dividends, Federal income taxes and Interest
Charges (which is reduced by Capitalized interest), divided by Fixed Charges.
Fixed Charges and Preferred Dividends consist of interest on long and short-
term debt (which is not reduced by Capitalized interest), dividends
on preferred stock on a pre-tax basis and Amortization of debt discount.