EXHIBIT 12

Alabama Gas Corporation

Computation of ratio of earnings to fixed charges

(In thousands, except for ratios)

	9 Months Ended 09/30/04		12 Months Ended 12/31/03		12 Months Ended 12/31/02		Three Months Ended 12/31/01		Years ended September 30,
									2001		2000		1999
Earnings, as defined:
Income from continuing operations before provision for income taxes and cumulative effect of change in accounting principle	$	46,513	$	52,692	$	45,389	$	4,234	$	39,463	$	40,646	$	36,460
Add:
Interest, net of amounts capitalized (1)		10,248		13,685		14,088		3,637		11,812		9,550		10,218
Appropriate portion of rent expense (1/3)*		646		867		787		196		781		736		693
Dividends on preferred stock of subsidiary		0		0		0		0		0		0		0
Total earnings, as defined	$	57,407	$	67,244	$	60,264	$	8,067	$	52,056	$	50,932	$	47,371
Fixed charges, as defined:
Interest (1)	$	10,547	$	13,967	$	14,557	$	3,680	$	12,316	$	9,870	$	10,441
Appropriate portion of rent expense (1/3)*		646		867		787		196		781		736		693
Dividends on preferred stock of subsidiary		0		0		0		0		0		0		0
Total fixed charges, as defined:	$	11,193	$	14,834	$	15,344	$	3,876	$	13,097	$	10,606	$	11,134
Ratio of earnings to fixed charges		5.13		4.53		3.93		2.08		3.97		4.80		4.25
Alagasco
Interest Expense as reported in the 10Q		10,547		13,967		14,557		3,680		12,316		9,870		10,366
Less AFUDC interest		299		282		469		43		504		320		148
Interest, net of amount capitalized		10,248		13,685		14,088		3,637		11,812		9,550		10,218
Interest Expense as reported in the 10Q		10,547		13,967		14,557		3,680		12,316		9,870		10,366
Add: Interest capitalized on Energen Plaza construction														75
Total Interest		10,547		13,967		14,557		3,680		12,316		9,870		10,441

(1) Includes amortization of debt discount and expense

 * rent expense per Commitments and Contingencies Footnote/3—management believes 1/3 of rent expense represents an appropriate apportionment.