1
Exhibit 12
WASHINGTON NATURAL GAS COMPANY
Ratio of earnings to fixed charges: Fiscal Year Ended September 30
------------------------------------------------------------
1991 1992 1993 1994 1995
------ ------ ------ ------- ------
1. Net Income (loss) 29,409 12,231 21,771 (8,243) 17,854
2. Add: Federal Income taxes 14,000 4,902 9,547 (5,991) 8,195
Extraordinary Non Recurring
Items of expense
------ ------ ------ ------- ------
3. Subtotal 43,409 17,133 31,318 (14,234) 26,049
4. Deduct interest capitalized (622) (656) (250) (453) (660)
5. Adjusted Net Income from
Continuing Operations 42,787 16,477 31,068 (14,687) 25,389
Add Fixed Charges:
Interest Expense on Funded and
Unfunded Debt 24,425 26,249 26,381 29,275 30,275
Amortization of Debt Discount 169 299 361 392 375
Other interest expense 208 (502) 340 1,097 1,566
Interest Capitalized 622 656 250 453 660
Rental for leased properties 1,406 1,517 1,633 1,337 1,338
------ ------ ------ ------- ------
8. Total fixed charges 26,830 28,219 28,965 32,554 34,214
9. Preferred dividend requirement (pre-tax
equivalent) 4,067 3,838 3,913 6,122 10,397
------ ------ ------ ------- ------
10. Total combined fixed charges and preferred
dividends 30,897 32,057 32,878 38,676 44,611
11. Net Earnings Available for Combined Fixed
Charges and Preferred dividends (5 plus 8) 69,617 44,696 60,033 17,867 59,603
12. Ratio of Earnings to combined fixed charges
and preferred dividends (11 divided by 10) 2.25 1.39 1.83 0.46 (1) 1.34
====== ====== ====== ======= ======
(1) For the year ended September 30, 1994, earnings were inadequate to cover
fixed charges by $ 20,809,000.
Page 1