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 income                                                             |                                
|                           | 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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