EXHIBIT 12 PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges For Fiscal Years Ended October 31, 1997 through 2001 and Twelve Months Ended July 31, 2002 (in thousands except ratio amounts) July 31, 2002 2001 2000 1999 1998 1997 -------- -------- -------- -------- -------- -------- Earnings: Pre-tax income from continuing operations $ 85,964 $ 90,683 $ 99,199 $103,077 $100,938 $ 86,484 Distributed income of equity investees 21,893 9,885 4,255 -- -- 9,252 Fixed charges 44,841 47,793 44,368 37,978 38,415 39,263 -------- -------- -------- -------- -------- -------- Total Adjusted Earnings $152,698 $148,361 $147,822 $141,055 $139,353 $134,999 ======== ======== ======== ======== ======== ======== Fixed Charges: Interest $ 42,962 $ 45,286 $ 42,010 $ 35,911 $ 36,453 $ 36,949 Amortization of debt expense 357 420 465 323 304 346 One-third of rental expense 1,522 2,087 1,893 1,744 1,658 1,968 -------- -------- -------- -------- -------- -------- Total Fixed Charges $ 44,841 $ 47,793 $ 44,368 $ 37,978 $ 38,415 $ 39,263 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 3.41 3.10 3.33 3.71 3.63 3.44 ======== ======== ======== ======== ======== ========