EX-12 2 ex12.htm EXHIBIT 12 ex12.htm
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,
  
   
2007
    
2006
    
2005
    
2007
    
2006
  
                               
Earnings: (1)
                              
Net income (2)
   $
99,819
     $
91,377
     $
95,128
     $
58,882
     $
50,440
  
Income taxes
    
51,328
      
47,691
      
57,500
      
34,756
      
31,119
  
Fixed Charges (See below) (3)
    
78,216
      
78,345
      
71,007
      
38,369
      
38,498
  
Less:  Preferred stock dividend
    
-    
     
-   
     
4
      
-   
     
-   
 
Total adjusted earnings
   $
229,363
     $
217,413
     $
223,631
     $
132,007
     $
120,057
  
Fixed charges: (3)
                                        
Total interest expense
   $
77,368
     $
77,538
     $
69,942
     $
38,007
     $
38,177
  
Interest component of rents
    
848
      
807
      
1,061
      
362
      
321
  
Preferred stock dividend
    
-  
      
-  
     
4
      
-  
     
-  
 
Total fixed charges
   $
78,216
     $
78,345
     $
71,007
     $
38,369
     $
38,498
  
                                         
Ratio of earnings to fixed charges
    
2.9
      
2.8
      
3.1
      
3.4
      
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.