EXHIBIT 12
<TABLE>
INDIANA GAS COMPANY, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited - Thousands, Except Ratios)
Twelve
Months
Ended
June 30 Year Ended December 31
------- ------------------------------------------
2000<1> 1999 1998 1997<2> 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net income $10,439 $29,742 $26,825 $13,648 $36,121 $40,258
Income taxes 7,765 16,734 14,058 7,813 21,637 24,110
Fixed charges 19,769 17,691 16,133 17,782 17,154 16,465
------- ------- ------- ------- ------- -------
Total adjusted $37,973 $64,167 $57,016 $39,243 $74,912 $80,833
earnings
------- ------- ------- ------- ------- -------
Fixed charges:
Total interest
expense $19,047 $16,969 $15,802 $17,049 $16,200 $15,528
Interest component
of rents 722 722 331 733 954 937
------- ------- ------- ------- ------- -------
Total fixed charges $19,769 $17,691 $16,133 $17,782 $17,154 $16,465
------- ------- ------- ------- ------- -------
Ratio of earnings
to fixed charges 1.9 3.6 3.5 2.2 4.4 4.9
====== ======= ======= ======= ======= =======
<FN>
<F1> Indiana Gas' ratio of earnings to fixed charges for the twelve-month
period excluding the merger and merger related costs of $18.6 million
would have been 2.9.
<2> 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>
