EXHIBIT 12.7
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES – DUKE ENERGY INDIANA
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
		Years Ended December 31,
(in millions)		2012		2011		2010		2009		2008
Earnings as defined for fixed charges calculation
Add:
	Pretax income from continuing operations	$	(123)	$	242	$	441	$	317	$	408
	Fixed charges		184		178		161		165		140
Deduct:
	Interest capitalized(a)		39		33		19		13		10
Total earnings		$	22	$	387	$	583	$	469	$	538
Fixed charges:
	Interest on debt, including capitalized portions	$	178	$	171	$	154	$	157	$	133
	Estimate of interest within rental expense		6		7		7		8		7
Total fixed charges		$	184	$	178	$	161	$	165	$	140
Ratio of earnings to fixed charges			0.1 (b)		2.2		3.6		2.9		3.8
(a)	Excludes the equity costs related to Allowance for Funds Used During Construction that are included in Other Income and Expenses in the Condensed Consolidated Statements of Operations.
(b)	Earnings insufficient to cover fixed charges by approximately $162 million during the year ended December 31, 2012 due primarily to a non-cash impairment charge.