EXHIBIT 12
NIPSCO INDUSTRIES, INC.
Ratio of Earnings to Fixed Charges
Twelve
Months
Year Ended December 31, Ended
--------------------------------------------------------------------- September 30,
1990 1991 1992 1993 1994 1995
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Earnings as defined in item 503(d) of
Regulation S-K:
Income before interest charges.......... $254,220,175 $255,952,543 $248,243,984 $261,422,078 $267,739,129 $280,131,118
Adjustments-
Federal income taxes.................... 55,494,310 67,012,826 61,556,504 89,021,967 100,320,953 117,455,537
State income tax........................ 13,422,937 11,277,178 11,700,316 13,132,078 15,398,420 17,518,793
Deferred investment tax credit, net..... 31,688,553 (6,295,166) (7,451,688) (7,446,643) (6,499,242) (7,432,624)
Deferred income taxes, net.............. (22,048,481) 6,768,760 14,503,060 2,122,294 (11,488,355) (21,283,941)
Federal and state income taxes
included in other income.............. 441,102 (3,240,751) (3,323,671) (5,537,170) (16,332,753) (17,577,000)
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$333,218,596 $331,475,390 $325,228,505 $352,714,604 $349,138,152 $368,811,883
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Fixed charges as defined in item 503(d)
of Regulation S-K:
Interest on long-term debt.............. $108,823,151 $100,380,978 $ 87,660,094 $ 82,121,209 $ 78,292,155 $ 81,272,584
Other Interest.......................... 3,843,101 7,093,814 9,954,982 9,238,106 11,650,228 12,861,209
Amortization of premium, reacquisition
premium, discount and expense on
debt, net............................. 3,586,135 3,404,385 3,322,908 3,582,624 3,897,151 4,310,115
Interest portion of rent expense........ 2,340,557 2,087,896 1,396,299 2,038,992 2,220,575 2,222,339
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$118,592,944 $112,967,073 $102,334,283 $ 96,980,931 $ 96,060,109 $100,666,247
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Plus preferred stock dividends:
Preferred dividend requirements
of subsidiary......................... $ 12,606,794 $ 11,686,276 $ 10,658,424 $ 10,341,006 $ 9,912,759 $ 9,118,271
Preferred dividend requirements factor.... 1.56 1.52 1.52 l.54 1.47 1.49
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Preferred dividend requirements
of subsidiary........................... 19,666,599 17,763,140 16,200,804 15,925,149 14,571,756 13,586,224
Fixed charges............................. 118,592,944 112,967,073 102,334,283 96,980,931 96,060,109 100,666,247
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$138,259,543 $130,730,213 $118,535,087 $112,906,080 $110,631,865 $114,252,471
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Ratio of earnings to fixed charges........ 2.41 2.54 2.74 3.12 3.16 3.23