EX-12 4 c23373exv12.htm RATIO OF EARNINGS TO FIXED CHARGES exv12
 

NiSource Inc.
Exhibit 12
Ratio of Earnings to Fixed Charges
The ration of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines (a).
                                         
              Year ended December 31,        
    2007     2006     2005     2004     2003  
Earnings as defined in item 503(d) of Regulation S-K:
                                        
Add:
                                        
Pretax income from continuing Operations (b)
   $ 469,933,220     $ 492,649,569     $ 429,078,302     $ 674,773,186     $ 664,707,185  
Fixed Charges
     435,677,445       419,697,994       447,970,179       430,982,525       494,982,336  
Amortization of capitalized interest (c)
     —       —       —       —       —  
Distributed income of equity investees
     44,134,385       21,974,949       3,384,404       3,793,299       2,908,900  
Share of pre-tax losses of equity investees for which charges arising guarantees are included in fixed charges
     —       —       —       —       —  
Deduct:
                                        
Interest capitalized (c)
     —       —       —       —       —  
Preference security dividend requirements of consolidated subsidiaries (d)
     —       1,662,827       6,463,063       6,833,674       6,980,690  
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
     (3,743 )     (8,288 )     (11,546 )     (22,187 )     2,544,375  
 
                              
 
                                        
 
   $ 949,748,793     $ 932,667,973     $ 873,981,368     $ 1,102,737,523     $ 1,153,073,356  
 
                              
         
Fixed charges as defined in item 503(d) of Regulation S-K:
                                        
Interest on long-term debt
   $ 353,404,387     $ 346,666,685     $ 385,598,925     $ 349,174,481     $ 403,595,874  
Other interest
     57,114,415       44,175,068       20,138,286       32,624,007       44,636,175  
Capitalized interest during period (c)
                     —       —       —  
Amortization of premium, reacquisition premium, discount and expense on debt, net
     7,322,778       7,693,483       17,547,706       21,571,279       18,944,887  
Interest portion of rent expense
     17,839,608       19,508,219       18,233,745       20,801,271       18,280,335  
Minority Interest
     (3,743 )     (8,288 )     (11,546 )     (22,187 )     2,544,375  
 
                                        
 
                              
 
                                        
 
   $ 435,677,445     $ 418,035,167     $ 441,507,116     $ 424,148,851     $ 488,001,646  
 
                              
 
                                        
Plus preferred stock dividends:
                                        
Preferred dividend requirements of subsidiary
   $ —     $ 1,076,298     $ 4,233,611     $ 4,380,513     $ 4,502,884  
Preferred dividend requirements factor
     0.64       0.65       0.66       0.64       0.65  
 
                              
 
                                        
Preference security dividend requirements of consolidated subsidiaries (d)
     —       1,662,827       6,463,063       6,833,674       6,980,690  
Fixed charges
     435,677,445       418,035,167       441,507,116       424,148,851       488,001,646  
 
                              
 
                                        
 
   $ 435,677,445     $ 419,697,994     $ 447,970,179     $ 430,982,525     $ 494,982,336  
 
                              
 
                                        
Ratio of earnings to fixed charges
     2.18       2.22       1.95       2.56       2.33  
 
(a)   Income Statement amounts have been adjusted for discontinued operations.
 
(b)   Excludes adjustment for minority interest in consolidated subsidiaries or income or loss from equity investees.
 
(c)   NiSource is a public utility following SFAS 71 and therefore does not add amortization of capitalized interest or subtract interest capitalized in determining earnings, nor reduces fixed charges for Allowance for Funds Used During Construction.
 
(d)   Preferred dividends, as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one minus the effective income tax rate applicable to continuing operations.