Exhibit 12

VECTREN UTILITY HOLDINGS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands, Except Ratio)

	Twelve months		Twelve months		Twelve months			Nine months		Nine months
	Ended		Ended		Ended			Ended		Ended
	September 30,		December 31,		December 31,			September 30,		September 30,
	2006		2005		2004			2006		2005
Earnings: (1)
Net income (2)	$	87,309	$	95,128	$	83,146		$	57,037	$	64,856
Income taxes		45,864		57,500		53,035			31,070		42,706
Equity in losses (income) of equity investee, net of distributions		-		-		(128	)		-		-
Fixed Charges (See below) (3)		77,265		71,007		68,363			57,812		51,411
Less: Preferred stock dividend		-		4		13			-		4
Total adjusted earnings	$	210,438	$	223,631	$	204,403		$	145,919	$	158,969
Fixed charges: (3)
Total interest expense	$	76,518	$	69,942	$	67,408		$	57,331	$	50,755
Interest component of rents		747		1,061		942			481		652
Preferred stock dividend		-		4		13			-		4
Total fixed charges	$	77,265	$	71,007	$	68,363		$	57,812	$	51,411
Ratio of earnings to fixed charges		2.7		3.1		3.0			2.5		3.1

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.