EXHIBIT 12
<TABLE>
<CAPTION>
INDIANA GAS COMPANY, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited - Thousands, Except Ratios)
Twelve
Months
Ended
September Year Ended December 31
30
2000<F1> 1999 1998 1997<F2> 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net
income $9,510 $29,742 $26,825 $13,648 $36,121 $40,258
Income
taxes 6,894 16,734 14,058 7,813 21,637 24,110
Fixed
charges 21,228 17,691 16,133 17,782 17,154 16,465
------- ------- ------- ------- ------- -------
Total adjusted
earnings $37,632 $64,167 $57,016 $39,243 $74,912 $80,833
------- ------- ------- ------- ------- -------
Fixed charges:
Total
interest $20,506 $16,969 $15,802 $17,049 $16,200 $15,528
expense
Interest
component 722 722 331 733 954 937
of rents
-------- ------- ------- ------- ------- -------
Total fixed
charges $21,228 $17,691 $16,133 $17,782 $17,154 $16,465
-------- ------- ------- ------- ------- -------
Ratio of
earnings to 1.8 3.6 3.5 2.2 4.4 4.9
fixed charges
======== ======= ======= ======= ======= =======
<FN>
<F1> Indiana Gas' ratio of earnings to fixed charges for the twelve-
month period excluding the merger and merger related costs, net of tax
of $15.9 million would have been 2.5.
<F2> Reflects the recording of restructuring costs in fiscal 1997 of
$39.5 million. Indiana Gas' ratio of earnings to fixed charges for
1997 before restructuring costs would have been 4.4.
</FN>
</TABLE>
