EXHIBIT 12
NISOURCE, INC.
RATIO OF EARNINGS TO FIXED CHARGES
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Year Ended December 31,
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1998 1999 2000 2001 2002
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EARNINGS AS DEFINED IN ITEM
503(d) OF REGULATION S-K:
Income before interest charges ................... $338,081,136 $376,782,105 $538,851,396 $924,307,325 $1,040,064,578
Adjustments-
Federal income taxes ........................... 115,799,335 91,898,851 81,238,674 195,454,089 122,573,425
State income tax ............................... 16,785,056 14,131,404 14,248,484 32,364,742 (2,759,456)
Deferred investment tax credit, net ............ (7,360,787) (7,691,257) (7,806,853) (9,008,085) (8,948,881)
Deferred income taxes, net ..................... (22,460,744) (7,890,731) 38,662,011 (27,987,781) 122,998,597
Federal and state income taxes included in
other income ................................. (1,900,910) -- -- -- --
Amortization of capitalized interest ........... -- -- -- -- --
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$438,943,086 $467,230,372 $665,193,712 $1,115,130,290 $1,273,928,263
============ ============ ============ ============== ==============
FIXED CHARGES AS DEFINED IN
ITEM 503(d) OF REGULATION S-K:
Interest on long-term debt ........................ $111,419,929 $131,788,755 $133,826,777 $436,427,884 $429,523,660
Other interest .................................... 16,536,021 33,234,752 166,561,203 145,350,904 79,958,251
Amortization of premium, reacquisition premium,
discount and expense on debt, net ............... 4,589,696 5,148,168 7,966,997 20,509,675 20,984,140
Interest portion of rent expense .................. 7,899,302 16,757,234 19,143,356 44,135,938 26,330,691
Minority Interest (Topies) ........................ -- 17,810,625 20,396,000 20,393,000 20,355,000
Capitalized interest during period ................ 0 0 575,000 2,202,000 2,951,000
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$140,444,948 $204,739,534 $348,469,313 $669,019,401 $580,102,742
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Plus preferred stock dividends:
Preferred dividend requirements of subsidiary ..... $8,538,180 $8,334,254 $7,817,003 $7,473,412 $6,782,448
Preferred dividend requirements factor ............ 1.49 1.61 1.61 1.61 1.61
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Preferred dividend requirements of subsidiary ..... 12,721,888 13,418,149 12,585,375 12,032,193 10,919,741
Fixed charges ..................................... 140,444,948 204,739,534 348,469,313 669,019,401 580,102,742
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$153,166,836 $218,157,683 $361,054,688 $681,051,594 $591,022,483
============ ============ ============ ============== ==============
Ratio of earnings to fixed charges .................. 2.87 2.14 1.84 1.64 2.16
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Note: Restate 2000 by subtracting variance from Income before interest charges (Line 1)
Last Yr 2001 Info 2000 2000
reported in 2000 restated Variance 2001
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Income-continuing ops bef inc tax 277,204,303 266,932,719 10,271,584 395,282,715
Minority interest 20,355,000 20,355,000 20,355,000
Equity investments (11,727,841) (11,727,841 (17,901,580) b (see financial ratio doc)
Fixed Charges 360,438,332 360,438,332 678,499,656
Cash received from equity inv 14,688,772 14,688,772 2,321,368 c (see financial ratio doc)
Preferred dividend requirement (12,585,375) (12,585,375) (12,032,193)
648,373,191 638,101,607 10,271,584 1,066,524,966
644,487,657
3,885,534
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2002 Restated for mapping and disco ops
Restated Restated
2000 2001 2002 3rd Qtr 2002
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Income- continuing ops bef inc tax 268,196,719 417,233,715 659,572,737 467,309,336
Minority interest 20,396,000 20,393,000 20,355,000 15,266,250
Equity investments (11,727,841) (17,901,580) (10,825,733) (10,961,452)
Fixed charges 361,054,688 681,051,594 591,022,483 441,999,755
Cash received from equity inv 14,688,772 2,321,368 2,884,035 2,163,026
Preferred dividend requirement 12,585,375 12,032,193 10,919,741 5,552,442
EARNINGS 665,193,712 1,115,130,290 1,273,928,263 921,329,358
Reported last year 630,463,072 1,074,188,966
Difference 34,730,640 40,941,324
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