Exhibit 12

VECTREN UTILITY HOLDINGS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands, Except Ratio)

	Twelve months		Twelve months		Twelve months		Three months		Three months
	Ended		Ended		Ended		Ended		Ended
	March 31,		December 31,		December 31,		March 31,		March 31,
	2007		2006		2005		2007		2006
Earnings: (1)
Net income (2)	$	98,822	$	91,377	$	95,128	$	50,885	$	43,440
Income taxes		49,756		47,691		57,500		29,295		27,230
Equity in losses (income) of equity investee, net of distributions		-		-		-		-		-
Fixed Charges (See below) (3)		77,539		78,345		71,007		19,618		20,424
Less: Preferred stock dividend		-		-		4		-		-
Total adjusted earnings	$	226,117	$	217,413	$	223,631	$	99,798	$	91,094
Fixed charges: (3)
Total interest expense	$	76,998	$	77,538	$	69,942	$	19,437	$	19,977
Interest component of rents		541		807		1,061		181		447
Preferred stock dividend		-		-		4		-		-
Total fixed charges	$	77,539	$	78,345	$	71,007	$	19,618	$	20,424
Ratio of earnings to fixed charges		2.9		2.8		3.1		5.1		4.5

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.