1 Exhibit 12 PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges For Fiscal Years Ended October 31, 1992 through 1996 and Twelve Months Ended April 30, 1997 (in thousands except ratio amounts) ------------------------------------------------------------- April 30, 1997 1996 1995 1994 1993 1992 -------- -------- -------- ------- ------- ------- Earnings: Net income from continuing operations $ 51,600 $ 48,562 $ 40,310 $35,506 $37,534 $35,310 Income taxes 32,982 30,928 25,442 21,407 23,427 21,259 Fixed charges 38,337 37,009 35,651 29,736 26,715 26,246 -------- -------- -------- ------- ------- ------- Total Adjusted Earnings $122,919 $116,499 $101,403 $86,649 $87,676 $82,815 ======== ======== ======== ======= ======= ======= Fixed Charges: Interest $ 36,209 $ 34,511 $ 33,224 $27,671 $24,870 $24,570 Amortization of debt expense 350 345 336 334 192 180 One-third of rental expense 1,778 2,153 2,091 1,731 1,653 1,496 -------- -------- -------- ------- ------- ------- Total Fixed Charges $ 38,337 $ 37,009 $ 35,651 $29,736 $26,715 $26,246 ======== ======== ======== ======= ======= ======= Ratio of Earnings to Fixed Charges 3.21 3.15 2.84 2.91 3.28 3.16 ======== ======== ======== ======= ======= ======= -11-