EX-12 2 ex12.htm EXHIBIT 12 Exhibit 12
Exhibit 12

VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio)

 

   
Twelve months
 
Twelve months
 
Twelve months
 
Six months
 
Six months
 
 
 
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
 
 
June 30,
 
December 31,
 
December 31,
 
June 30,
 
June 30,
 
 
 
2006
 
2005
 
2004
 
2006
 
2005
  
                       
Earnings: (1)
                      
Net income (2)
  
$
89,691
  
$
95,128
  
$
83,146
  
$
50,440
  
$
55,877
  
Income taxes
    
51,472
   
57,500
   
53,035
   
31,119
   
37,147
 
Equity in losses (income) of equity investee, net of distributions
    
-
   
-
   
(128
)
  
-
   
-
 
Fixed Charges (See below) (3)
    
75,642
   
71,007
   
68,363
   
38,498
   
33,863
 
Less: Preferred stock dividend
    
-
   
4
   
13
   
-
   
4
 
    Total adjusted earnings
  
$
216,805
  
$
223,631
  
$
204,403
  
$
120,057
  
$
126,883
  
Fixed charges: (3)
                                
Total interest expense
  
$
74,791
  
$
69,942
  
$
67,408
  
$
38,177
  
$
33,328
  
Interest component of rents
    
851
   
1,061
   
942
   
321
   
531
 
Preferred stock dividend
    
-
   
4
   
13
   
-
   
4
 
    Total fixed charges
  
$
75,642
  
$
71,007
  
$
68,363
  
$
38,498
  
$
33,863
  
                                 
Ratio of earnings to fixed charges
    
2.9
   
3.1
   
3.0
   
3.1
   
3.7
 

1.  
For the purposes of computing these ratios, earnings consist of pretax net income before income (losses) from equity investees, fixed charges, and less preferred stock dividends of a consolidated subsidiary.

   2.  Net income, as defined, is before preferred stock dividend requirement of subsidiary and cumulative effect of change in accounting principle

3.  
Fixed charges consist of total interest, amortization of debt discount, premium and expense, the estimated portion of interest implicit in rentals, and preferred stock dividends of a consolidated subsidiary.