EXHIBIT 12.1 EASTERN ENTERPRISES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS) NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, --------------------------------------------------------------------- -------------------------- 1998 1997 1996 1995 1994 1999 1998 Pretax earnings $ 79,994 $ 82,870 $ 102,249 $ 89,805 $ 68,520 $ 44,354 $ 49,339 Less: Capitalized Interest (490) (636) (570) (591) (932) (628) (311) Plus: Fixed Changes $ 39,749 $ 44,028 $ 44,488 $ 48,878 $ 48,382 $ 32,759 $ 29,323 --------------------------------------------------------------------- -------------------------- Adjusted earnings $ 119,253 $ 126,262 $ 146,167 $ 138,092 $ 115,970 76,485 78,351 Fixed Charges: Interest reported $ 33,584 $ 37,411 $ 37,290 $ 41,273 $ 41,001 $ 27,062 $ 24,495 Interest capitalized 490 636 570 591 932 628 311 Fuel clause interest 1,302 2,452 2,120 2,480 2,061 1,505 1,129 Preferred stock dividend 0 0 0 0 0 0 0 Interest element of lease rental payments (1/3) 4,373 3,529 4,508 4,534 4,388 3,564 3,389 --------------------------------------------------------------------- -------------------------- $ 39,749 $ 44,028 $ 44,488 $ 48,878 $ 48,382 $ 32,759 $ 29,323 Fixed Charge Coverage 3.0 2.9 3.3 2.8 2.4 2.3 2.7