EXHIBIT 12
NiSource, INC.
RATIO OF EARNINGS TO FIXED CHARGES
<Table>
<Caption>
Year Ended December 31,
------------------------------------------------------------------------------
1997 1998 1999 2000 2001
------------ ------------ ------------ ------------ --------------
EARNINGS AS DEFINED IN ITEM
503(d) OF REGULATION S-K:
Income before interest
charges ........................ $319,514,639 $338,081,136 $376,782,105 $504,120,756 $ 883,366,001
Adjustments-
Federal income taxes ........... 97,010,863 115,799,335 91,898,851 81,292,674 193,915,089
State income tax ............... 16,856,952 16,785,056 14,131,404 14,249,484 32,364,742
Deferred investment tax
credit, net .................. (7,375,636) (7,360,787) (7,691,257) (7,806,853) (9,008,085)
Deferred income taxes, net ..... (1,466,940) (22,460,744) (7,890,731) 38,155,011 (34,112,781)
Federal and state income
taxes included in other
income ....................... 987,240 (1,900,910) -- -- --
Amortization of
capitalized interest ......... -- -- -- -- --
------------ ------------ ------------ ------------ --------------
$425,527,118 $438,943,086 $467,230,372 $630,011,072 $1,066,524,966
============ ============ ============ ============ ==============
FIXED CHARGES AS DEFINED IN
ITEM 503(d) OF REGULATION S-K:
Interest on long-term debt ....... $102,842,096 $111,419,929 $131,788,755 $133,879,888 $ 436,427,884
Other interest ................... 13,453,006 16,536,021 33,234,752 166,561,203 145,040,904
Amortization of premium,
reacquisition premium,
discount and expense
on debt, net ................... 4,718,120 4,589,696 5,148,168 7,913,866 20,509,675
Interest portion of rent
expense ........................ 2,939,650 7,899,302 16,757,234 19,143,000 44,135,938
Minority Interest (Topies) ....... -- -- 17,810,625 20,355,000 20,355,000
Capitalized interest during
period ......................... 0 0 0 0 0
------------ ------------ ------------ ------------ --------------
$123,952,872 $140,444,948 $204,739,534 $347,852,957 $ 666,469,401
============ ============ ============ ============ ==============
Plus preferred stock dividends:
Preferred dividend
requirements of subsidiary ..... $ 8,691,457 $ 8,538,180 $ 8,334,254 $ 7,817,003 $ 7,473,412
Preferred dividend
requirements factor ............ 1.54 1.49 1.61 1.61 1.61
------------ ------------ ------------ ------------ --------------
Preferred dividend
requirements of subsidiary ..... 13,384,844 12,721,888 13,418,149 12,585,375 12,032,193
Fixed charges .................... 123,952,872 140,444,948 204,739,534 347,852,957 666,469,401
------------ ------------ ------------ ------------ --------------
$137,337,716 $153,166,836 $218,157,683 $360,438,332 $ 678,501,594
============ ============ ============ ============ ==============
Ratio of earnings to fixed
charges .......................... 3.10 2.87 2.14 1.75 1.57
</Table>