Exhibit 12
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of earnings to fixed charges for Southern Union on a historical basis for the years ended December 31, 2010, 2009, 2008, 2007 and 2006. For the purpose of calculating such ratios, “earnings” consist of pre-tax income from continuing operations before income or loss from equity investees, adjusted to reflect distributed income from equity investments, and fixed charges, less capitalized interest. “Fixed charges” consist of interest costs, amortization of debt discount, premiums and issuance costs and an estimate of interest implicit in rentals. No adjustment has been made to earnings for the amortization of capital interest for the periods presented as such amount is immaterial. Interest on FIN 48 liabilities is excluded from the computation of fixed charges as it is recorded by Southern Union in income tax expense versus interest expense.
	Year Ended December 31,
	2010			2009			2008			2007			2006
	(In thousands)
FIXED CHARGES:
Interest Expense	$	210,008		$	191,022		$	204,272		$	202,403		$	202,513
Net amortization of debt discount, premium and
issuance expense		6,657			5,778			3,136			743			12,130
Capitalized Interest		6,646			25,747			18,963			14,708			5,492
Interest portion of rental expense		6,685			7,576			6,386			6,645			6,234
Total Fixed Charges	$	229,996		$	230,123		$	232,757		$	224,499		$	226,369
EARNINGS:
Consolidated pre-tax income (loss) from
continuing operations	$	349,677		$	251,480		$	399,926		$	323,970		$	326,330
Earnings of equity investments		(105,415	)		(80,790	)		(75,030	)		(100,914	)		(141,370	)
Distributed income from equity investments		3,500			-			77,150			103,550			62,637
Capitalized interest		(6,646	)		(25,747	)		(18,963	)		(14,708	)		(5,492	)
Total fixed charges (from above)		229,996			230,123			232,757			224,499			226,369
Earnings Available for Fixed Charges	$	471,112		$	375,066		$	615,840		$	536,397		$	468,474
Ratio of Earnings to Fixed Charges		2.0			1.6			2.6			2.4			2.1