EXHIBIT 12

CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDEND REQUIREMENTS

|                                                                       |                                       | Twelve Months Ended            
|---------------------------------------------------------------------- | ------------------------------------- | -------------------------------
|
|
|Fixed charges, as defined:                                             |                                       |                                
|                                                                       | Interest expense                      |                                
|                                                                       | Amortization of debt issuance expense |                                
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|Earnings, as defined:                                                  |                                       |                                
|                                                                       | Net earnings                          |                                
|                                                                       | Add (deduct):                         |                                
|                                                                       |                                       | Income taxes                   
|                                                                       |                                       | Fixed charges                  
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|Ratio of earnings to fixed charges                                     |                                       |                                
|                                                                       |                                       |                                
|Fixed charges and preferred dividend requirements:                     |                                       |                                
|                                                                       |                                       | Fixed charges                  
|                                                                       |                                       | Preferred dividend requirements
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|                                                                       |                                       |                                
|Ratio of earnings to fixed charges and preferred dividend requirements |                                       |                                
|                                                                       |                                       |                                

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