EX-12 2 c12445exv12.htm RATIO OF EARNINGS TO FIXED CHARGES exv12
 

Exhibit 12
NiSource Inc.
Ratio of Earnings to Fixed Charges
The ration of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines (a).
                                         
    Year ended December 31,  
    2006     2005     2004     2003     2002  
Earnings as defined in item 503(d) of Regulation S-K:
                                        
Add:
                                        
Pretax income from continuing Operations (b)
   $ 492,649,569     $ 429,078,302     $ 674,773,186     $ 664,707,185     $ 635,204,364  
Fixed Charges
     419,697,994       447,970,179       430,982,525       494,982,336       569,710,830  
Amortization of capitalized interest (c)
     —       —       —       —       —  
Distributed income of equity investees
     21,974,949       3,384,404       3,793,299       2,908,900       2,884,035  
Share of pre-tax losses of equity investees for which charges arising guarantees are included in fixed charges
     —       —       —       —       —  
Deduct:
                                        
Interest capitalized (c)
     —       —       —       —       —  
Preference security dividend requirements of consolidated subsidiaries (d)
     1,662,827       6,463,063       6,833,674       6,980,690       10,513,144  
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
     (8,288 )     (11,546 )     2,544,375       20,355,000       20,393,000  
 
                              
 
                                        
 
   $ 932,667,973     $ 873,981,368     $ 1,100,170,961     $ 1,135,262,731     $ 1,176,893,085  
 
                              
 
                                        
Fixed charges as defined in item 503(d) of Regulation S-K:
                                        
Interest on long-term debt
   $ 346,666,685     $ 385,598,925     $ 349,174,481     $ 403,595,874     $ 426,801,324  
Other interest
     44,175,068       20,138,286       32,624,007       44,636,175       70,950,052  
Capitalized interest during period (c)
             —       —       —       —  
Amortization of premium, reacquisition premium, discount and expense on debt, net
     7,693,483       17,547,706       21,571,279       18,944,887       20,984,140  
Interest portion of rent expense
     19,508,219       18,233,745       20,801,271       18,280,335       20,107,170  
Minority Interest
     (8,288 )     (11,546 )     (22,187 )     2,544,375       20,355,000  
 
                                        
 
                              
 
                                        
 
   $ 418,035,167     $ 441,507,116     $ 424,148,851     $ 488,001,646     $ 559,197,686  
 
                              
 
                                        
Plus preferred stock dividends:
                                        
Preferred dividend requirements of subsidiary
   $ 1,076,298     $ 4,233,611     $ 4,380,513     $ 4,502,884     $ 6,782,448  
Preferred dividend requirements factor
     0.65       0.66       0.64       0.65       0.65  
 
                              
 
                                        
Preference security dividend requirements of consolidated subsidiaries (d)
     1,662,827       6,463,063       6,833,674       6,980,690       10,513,144  
Fixed charges
     418,035,167       441,507,116       424,148,851       488,001,646       559,197,686  
 
                              
 
                                        
 
   $ 419,697,994     $ 447,970,179     $ 430,982,525     $ 494,982,336     $ 569,710,830  
 
                              
 
                                        
Ratio of earnings to fixed charges
     2.22       1.95       2.55       2.29       2.07  
 
(a)   Income Statement amounts have been adjusted for discontinued operations.
 
(b)   Excludes adjustment for minority interest in consolidated subsidiaries or income or loss from equity investees.
 
(c)   NiSource is a public utility following SFAS 71 and therefore does not add amortization of capitalized interest or subtract interest capitalized in determining earnings, nor reduces fixed charges for Allowance for Funds Used During Construction.
 
(d)   Preferred dividends, as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one minus the effective income tax rate applicable to continuing operations.