**EXHIBIT 12**

 

**CASCADE NATURAL GAS CORPORATION**

**COMPUTATION OF RATIO OF EARNINGS TO FIXEDCHARGES**

**AND PREFERRED DIVIDEND REQUIREMENTS**

 
|                                                                    |   | **Twelve  Months Ended**   |   |
|-------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                    |   | **30-Jun-03**              |   | **30-Sep-02** |   | **30-Sep-01** |   | **30-Sep-00** |   | **30-Sep-99** |   | **30-Sep-98** |   |
|                                                                    |   | **(dollars in thousands)** |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges, as defined:                                              |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                        |   | $                          | 12,439 |   | $ | 12,384 |   | $ | 10,509 |   | $ | 10,936 |   | $ | 10,486 |   | $ | 10,132 |   |
| Amortization of debt issuance expense                                   |   | 696                        |   | 652 |   | 607 |   | 607 |   | 603 |   | 605 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total fixed charges                                                     |   | $                          | 13,135 |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,543 |   | $ | 11,089 |   | 10,737 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Earnings, as defined:                                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                              |   | $                          | 9,042  |   | $ | 10,762 |   | $ | 17,236 |   | $ | 15,374 |   | $ | 14,053 |   | $ | 9,544 |   |
| Add (deduct):                                                           |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                            |   | 4,792                      |   | 5,781 |   | 9,278 |   | 9,051 |   | 8,075 |   | 5,694 |   |
| Fixed charges                                                           |   | 13,135                     |   | 13,036 |   | 11,116 |   | 11,543 |   | 11,089 |   | 10,737 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total earnings                                                          |   | $                          | 26,969 |   | $ | 29,579 |   | $ | 37,630 |   | $ | 35,968 |   | $ | 33,217 |   | $ | 25,975 |   |
| Ratio of earnings to fixed charges                                      |   | 2.05                       |   | 2.27 |   | 3.39 |   | 3.12 |   | 3.00 |   | 2.42 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges and preferred dividend requirements:                      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges                                                           |   | $                          | 13,135 |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,543 |   | $ | 11,089 |   | $ | 10,737 |   |
| Preferred dividend requirements                                         |   | —                     |   | — |   | — |   | 6 |   | 756 |   | 778 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                   |   | $                          | 13,135 |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,549 |   | $ | 11,845 |   | $ | 11,515 |   |
|                                                                    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges and preferred dividend  requirements |   | 2.05                       |   | 2.27 |   | 3.39 |   | 3.12 |   | 2.80 |   | 2.26 |   |

 

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