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                                                                      EXHIBIT 12
 
                             BAY STATE GAS COMPANY
 
   STATEMENT RE: COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
                             (DOLLARS IN THOUSANDS)
 


                                                           1996          1995          1994          1993          1992
                                                          -------       -------       -------       -------       -------
                                                                                                   
Earnings:
    Net income.........................................   $27,072       $23,128       $24,485       $22,807       $18,363
    Adjustments:
        Income taxes...................................    16,953        14,575        15,642        13,726        11,250
        Fixed charges (as below).......................    21,522        19,365        17,359        15,906        15,170
                                                          -------       -------       -------       -------       -------
            Total adjusted earnings....................   $65,547       $57,068       $57,486       $52,439       $44,783
                                                          =======       =======       =======       =======       =======
Fixed charges:
    Total interest expense.............................   $17,345       $17,300       $15,305       $13,610       $13,073
    Interest component of rents........................     4,177         2,065         2,054         2,296         2,097
                                                          -------       -------       -------       -------       -------
            Total fixed charges........................   $21,522       $19,365       $17,359       $15,906       $15,170
                                                          =======       =======       =======       =======       =======
Ratio of earnings to fixed charges.....................      3.05          2.95          3.31          3.30          2.95
                                                             ====          ====          ====          ====          ====