Exhibit 12

VECTREN UTILITY HOLDINGS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands, Except Ratio)

Year ended December 31,
	2007		2006		2005		2004			2003
Earnings: (1)
Net income (2)	$	106,506	$	91,377	$	95,128	$	83,146		$	85,587
Income taxes		66,741		47,691		57,500		53,035			51,582
Equity in (income) losses of equity investees, net of distributions		-		-		-		(128	)		511
Fixed Charges (See below) (3)		81,145		78,345		71,007		68,363			66,699
Less:  Preferred stock dividend		-		-		4		13			23
Total adjusted earnings	$	254,392	$	217,413	$	223,631	$	204,403		$	204,356
Fixed charges: (3)
Total interest expense	$	80,576	$	77,538	$	69,942	$	67,408		$	66,135
Interest component of rents		569		807		1,061		942			541
Preferred stock dividend		-		-		4		13			23
Total fixed charges	$	81,145	$	78,345	$	71,007	$	68,363		$	66,699
Ratio of earnings to fixed charges		3.1		2.8		3.1		3.0			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.