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                                                                   EXHIBIT 12.01

                  UNITED CITIES GAS COMPANY AND SUBSIDIARIES
                                       
        COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
                                       
                       FOR THE YEARS ENDED DECEMBER 31,




(In thousands, except ratio amounts)
                                                       1994         1993         1992         1991         1990
                                                       ----         ----         ----         ----         ----
                                                                                           
Fixed Charges, as defined:
   Interest on long-term debt.....................    $14,026      $14,553      $12,965      $11,111      $ 9,009
   Amortization of debt discount..................        227          220          181          233          231
                                                      -------      -------      -------      -------      -------
      Total.......................................    $14,253      $14,773      $13,146      $11,344      $ 9,240
                                                      =======      =======      =======      =======      =======
Earnings, as defined:
   Net income.....................................    $12,093      $12,150      $10,218       $7,875      $ 3,373
   Taxes on income................................      6,503        5,681        5,171        2,564          532
   Fixed charges, as above........................     14,253       14,773       13,146       11,344        9,240
                                                      -------      -------      -------      -------      -------
      Total.......................................    $32,849      $32,604      $28,535      $21,783      $13,145
                                                      =======      =======      =======      =======      =======

Ratio of Consolidated Earnings to Fixed Charges...       2.30         2.21         2.17         1.92         1.42
                                                      =======      =======      =======      =======      =======