EXHIBIT (12)
NORTHWEST NATURAL GAS COMPANY
Computation of Ratio of Earnings to Fixed Charges
January 1, 1998 - September 30, 2003
(Thousands, except ratio of earnings to fixed charges)
(Unaudited)
12 Months 9 Months
Year Ended December 31, Ended Ended
---------------------------------------------------------- Sept. 30, Sept. 30,
1998 1999 2000 2001 2002 2003/1 2003/1,2
---------------------------------------------------------- ---------------------------
Fixed charges, as defined:
Interest on long-term debt $ 27,389 $ 27,728 $ 29,987 $ 30,224 $ 32,264 $ 33,500 $ 25,174
Other interest 4,909 2,778 3,628 3,772 1,620 1,811 1,427
Amortization of debt
discount and expense 714 699 735 768 799 710 521
Interest portion of
rentals 1,986 1,707 1,628 1,572 1,578 1,644 1,215
-------- --------- --------- --------- --------- --------- --------
Total fixed charges, as
defined $ 34,998 $ 32,912 $ 35,978 $ 36,336 $ 36,261 $ 37,665 $ 28,337
======== ========= ========= ========= ========= ========= ========
Earnings, as defined:
Net income $ 27,301 45,296 50,224 50,187 43,792 42,665 $ 24,320
Taxes on income 14,604 24,591 26,829 27,553 23,444 21,684 12,170
Fixed charges, as above 34,998 32,912 35,978 36,336 36,261 37,665 28,337
-------- --------- --------- --------- --------- --------- --------
Total earnings, as defined $ 76,903 $ 102,799 $ 113,031 $ 114,076 $ 103,497 $ 102,014 $ 64,827
======== ========= ========= ========= ========= ========= ========
Ratio of earnings to fixed
charges 2.20 3.12 3.14 3.14 2.85 2.71 2.29
======== ========= ========= ========= ========= ========= ========
<FN>
1 For the nine- and twelve-months ended Sept. 30, 2003, other interest
includes dividends on redeemable preferred stock which have been
reclassified as interest expense beginning July 1, 2003 upon adoption of
SFAS No. 150.
2 A significant part of the business of the Company is of a seasonal nature;
therefore, the ratio of earnings to fixed charges for the interim period is
not necessarily indicative of the results for a full year.
</FN>