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NiSource, INC.
EXHIBIT 12
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
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1999 2000 2001 2002 2003
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EARNINGS AS DEFINED IN ITEM
503(d) OF REGULATION S-K:
Income before interest
charges.................................... $376,782,105 $ 494,519,475 $ 870,211,161 $ 991,748,855 $ 934,045,019
Adjustments-
Federal income taxes....................... 91,898,851 71,139,657 189,680,818 126,444,712 130,354,596
State income tax........................... 14,131,404 13,355,910 29,423,420 (3,328,930) 24,282,318
Deferred investment tax
credit, net............................... (7,691,257) (7,806,853) (9,008,085) (8,948,881) (8,873,363)
Deferred income taxes, net................. (7,890,731) 38,720,144 (43,505,150) 104,733,584 88,426,495
Federal and state income
taxes included in other
income.................................... - - - - -
Amortization of
capitalized interest...................... - - - - -
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$467,230,372 $609,928,333 $1,036,802,164 $1,210,649,340 $1,168,235,065
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FIXED CHARGES AS DEFINED IN
ITEM 503(d) OF REGULATION S-K:
Interest on long-term debt.................. $131,788,755 $136,618,874 $ 438,229,953 $ 426,983,858 $ 403,595,874
Other interest.............................. 33,234,752 163,630,341 139,332,645 70,950,052 44,636,174
Amortization of premium,
reacquisition premium,
discount and expense
on debt, net............................... 5,148,168 7,966,977 20,509,675 20,984,140 18,944,887
Interest portion of rent
expense.................................... 16,757,234 8,989,500 31,061,310 20,107,170 18,280,335
Minority Interest (Topies) 17,810,625 20,396,000 20,393,000 20,355,000 2,544,375
Capitalized interest during period.......... 0 0 0 0 0
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$204,739,534 $337,601,692 $ 649,526,583 $ 559,380,220 $ 488,001,645
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Plus preferred stock dividends:
Preferred dividend
requirements of subsidiary................ $ 8,334,254 $ 7,817,003 $ 7,473,412 $ 6,782,448 $ 4,502,884
Preferred dividend
requirements factor........................ 1.61 1.61 1.61 1.61 1.61
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Preferred dividend
requirements of subsidiary................. 13,418,149 12,585,375 12,032,193 10,919,741 7,249,643
Fixed charges............................... 204,739,534 337,601,692 649,526,583 559,380,220 488,001,645
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$218,157,683 $350,187,067 $ 661,558,776 $ 570,299,961 $ 495,251,289
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Ratio of earnings to fixed
charges.................................... 2.14 1.74 1.57 2.12 2.36