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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