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EXHIBIT 12

PSI ENERGY INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

						Year Ended December 31
				Nine Months Ended September 30, 2002
						2001		2000		1999		1998		1997
				(Thousands, except ratios)
Earnings Available
	Net Income			$	135,440	$	162,333	$	135,398	$	117,199	$	52,038	$	132,205
	Plus:
		Income Taxes			68,861		106,086		88,547		69,215		23,147		77,380
		Interest on Long-Term Debt			58,658		74,299		72,999		77,090		80,259		71,638
		Other Interest			3,992		14,110		8,463		11,425		11,060		13,584
		Interest Component of Rents(a)			3,782		5,043		5,396		5,394		5,351		5,390
			Total Available	$	270,733	$	361,871	$	310,803	$	280,323	$	171,855	$	300,197
Fixed Charges
	Interest Charges			$	62,650	$	88,409	$	81,462	$	88,515	$	91,319	$	85,222
	Interest Component of Rents(a)				3,782		5,043		5,396		5,394		5,351		5,390
			Total Fixed Charges	$	66,432	$	93,452	$	86,858	$	93,909	$	96,670	$	90,612
Ratio of Earnings to Fixed Charges					4.08		3.87		3.58		2.99		1.78		3.31
Fixed Charges and Preferred Stock Dividends
	Interest Charges			$	62,650	$	88,409	$	81,462	$	88,515	$	91,319	$	85,222
	Interest Component of Rents(a)				3,782		5,043		5,396		5,394		5,351		5,390
	Preferred dividends (pre-income tax basis)				2,927		4,278		6,182		7,319		8,176		18,297
Total Fixed Charges and Preferred Stock Dividends				$	69,359	$	97,730	$	93,040	$	101,228	$	104,846	$	108,909
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends					3.90		3.70		3.34		2.77		1.64		2.76

(a)

Estimated interest component of rentals (1/3 of rentals was used where no readily defined interest element could be determined).

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EXHIBIT 12