EXHIBIT 12
NIPSCO INDUSTRIES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31,
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1992 1993 1994 1995 1996
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Earnings as defined in
Item 603(d) of
Regulation S-K:
Income before interest
charges............... $248,243,984 $261,422,078 $267,739,129 $284,348,649 $290,836,347
Adjustments:
Federal income taxes.. 61,556,604 89,021,067 100,320,963 102,223,791 78,532,661
State income tax...... 11,700,316 13,132,078 15,398,420 15,420,719 12,450,863
Deferred investment
tax credit, net...... (7,461,688) (7,446,643) (6,488,242) (7,616,362) (7,407,813)
Deferred income taxes,
net.................. 14,503,080 2,122,284 (11,488,356) (2,680,002) 27,418,121
Federal and state
income taxes included
in other income...... (3,323,871) (5,537,170) (15,332,783) (9,260,066) (4,076,337)
Amortization of
capitalized interest. 0 0 103,130 247,616 247,512
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$326,228,506 $362,714,804 $349,241,282 $383,790,245 $387,301,754
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Fixed charges as defined
in item 603(d) of
Regulation S-K:
Interest on long-term
debt.................. $ 37,660,094 $ 82,121,208 $ 78,292,155 $ 82,555,251 $ 35,381,829
Other interest......... 9,954,982 9,235,108 11,860,228 12,731,395 17,448,667
Amortization of
premium, reacquisition
premium, discount and
expense on debt, net.. 3,322,908 3,662,624 3,897,161 4,401,668 4,506,472
Interest portion of
rent expense.......... 1,395,288 2,038,882 2,220,675 2,416,111 2,656,116
Capitalized interest
during period......... 326,631 4,664,887 2,145,182 234,613 0
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$102,659,814 $101,835,618 $ 98,205,291 $102,488,028 $110,091,884
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Plus preferred stock
dividends:
Preferred dividend
requirements of
subsidiary............ $ 10,858,424 $ 10,541,008 $ 9,912,758 $ 9,046,207 $ 8,711,986
Preferred dividend
requirements factor... 1.52 1.66 1.67 1.54 1.59
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Preferred dividend
requirements of
subsidiary............ 18,200,804 16,131,969 14,571,756 13,931,169 13,852,056
Fixed charges.......... 102,859,314 101,638,818 88,206,291 102,488,928 110,091,884
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$119,860,618 $117,767,787 $112,777,047 $116,419,187 $123,843,340
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Ratio of earnings to
fixed charges.......... 2.74 3.00 3.10 3.30 3.21