|                                                    |                  
|--------------------------------------------------- | -----------------
|CH ENERGY GROUP, INC.                               | EXHIBIT  (12) (i)
|Computation of Ratio of Earnings to
  Fixed Charges |                  

|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|-- | ---- | ------------------------------------------------------------------------------- |  | ---------------------- | - | ---------------------- | - | ------------------------- |  | ---------------------- | ------ | ---------------------- |  | ---- | - | ------ | - | ---- |  | ---- | ------ | ---- |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | --- |  |  | - | ------ | - | 
|   |      |                                                                                 |  | 2007                   |   | 2006                   |   | Year
  Ended December 31, | 
|   |      |                                                                                 |  |                        |   |                        |   |                           | 
|   |      |                                                                                 |  | 3
  MonthsEndedJune 30 |   | 6
  MonthsEndedJune 30 |   | 12
  MonthsEndedJune 30   |  | 3
  MonthsEndedJune 30 |        | 6
  MonthsEndedJune 30 |  | 2006 |   | 2005   |   | 2004 |  | 2003 |        | 2002 | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |      | Earnings: ($000)                                                                |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|A. |      | Net Income
from Continuing Operations                                           |  |                        | $ | 5,189                  |   |                           |  | $                      | 26,887 |                        |  |      | $ | 47,603 |   |      |  | $    | 4,068  |      |  |  | $ | 22,368 |   |  |  | $ | 43,084 |   |  |  | $ | 44,291 |   |  |  | $ | 42,423 |   |  |  | $ | 43,985 |     |  |  | $ | 36,453 |   | 
|B. |      | Preferred
Stock Dividends                                                       |  |                        |   | 242                    |   |                           |  |                        | 485    |                        |  |      |   | 970    |   |      |  |      | 242    |      |  |  |   | 485    |   |  |  |   | 970    |   |  |  |   | 970    |   |  |  |   | 970    |   |  |  |   | 1,387  |     |  |  |   | 2,161  |   | 
|C. |      | Federal and
State Income Tax                                                    |  |                        |   | 1,293                  |   |                           |  |                        | 14,256 |                        |  |      |   | 23,167 |   |      |  |      | 2,099  |      |  |  |   | 14,858 |   |  |  |   | 23,769 |   |  |  |   | 25,819 |   |  |  |   | 31,256 |   |  |  |   | 30,435 |     |  |  |   | 22,294 |   | 
|   | Less | Income from
Equity Investments                                                  |  |                        |   | 349                    |   |                           |  |                        | 1,544  |                        |  |      |   | 2,423  |   |      |  |      | 741    |      |  |  |   | 931    |   |  |  |   | 1,810  |   |  |  |   | 1,456  |   |  |  |   | 922    |   |  |  |   | 865    |     |  |  |   | 749    |   | 
|   | Plus | Cash
Distribution from Equity Investments                                       |  |                        |   | 549                    |   |                           |  |                        | 1,820  |                        |  |      |   | 2,785  |   |      |  |      | 0      |      |  |  |   | 40     |   |  |  |   | 1,005  |   |  |  |   | 1,833  |   |  |  |   | 1,776  |   |  |  |   | 1,249  |     |  |  |   | 959    |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|D. |      | Earnings
before Income Taxes and Equity Inv.                                    |  |                        | $ | 6,924                  |   |                           |  | $                      | 41,904 |                        |  |      | $ | 72,102 |   |      |  | $    | 5,668  |      |  |  | $ | 36,820 |   |  |  | $ | 67,018 |   |  |  | $ | 71,457 |   |  |  | $ | 75,503 |   |  |  | $ | 76,191 |     |  |  | $ | 61,118 |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|E. |      | Fixed
Charges                                                                   |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |      | Interest on
Mortgage Bonds                                                      |  |                        |   | 0                      |   |                           |  |                        | 0      |                        |  |      |   | 0      |   |      |  |      | 0      |      |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 570    |     |  |  |   | 2,136  |   | 
|   |      | Interest on
Other Long-Term Debt                                                |  |                        |   | 4,495                  |   |                           |  |                        | 8,986  |                        |  |      |   | 17,387 |   |      |  |      | 4,071  |      |  |  |   | 8,024  |   |  |  |   | 16,425 |   |  |  |   | 13,826 |   |  |  |   | 11,488 |   |  |  |   | 10,699 |     |  |  |   | 9,819  |   | 
|   |      | Other
Interest                                                                  |  |                        |   | 987                    |   |                           |  |                        | 1,979  |                        |  |      |   | 3,858  |   |      |  |      | 847    |      |  |  |   | 1,743  |   |  |  |   | 3,622  |   |  |  |   | 2,577  |   |  |  |   | 5,517  |   |  |  |   | 9,828  | (1) |  |  |   | 11,659 |   | 
|   |      | Interest
Portion of Rents (2)                                                   |  |                        |   | 288                    |   |                           |  |                        | 594    |                        |  |      |   | 1,179  |   |      |  |      | 253    |      |  |  |   | 527    |   |  |  |   | 1,112  |   |  |  |   | 1,077  |   |  |  |   | 1,192  |   |  |  |   | 1,040  |     |  |  |   | 749    |   | 
|   |      | Amortization
of Premium & Expense on Debt                                       |  |                        |   | 238                    |   |                           |  |                        | 484    |                        |  |      |   | 985    |   |      |  |      | 245    |      |  |  |   | 490    |   |  |  |   | 991    |   |  |  |   | 1,043  |   |  |  |   | 1,066  |   |  |  |   | 1,159  |     |  |  |   | 1,249  |   | 
|   |      | Preferred
Stock Dividends Requirements of Central Hudson                        |  |                        |   | 300                    |   |                           |  |                        | 709    |                        |  |      |   | 1,378  |   |      |  |      | 308    |      |  |  |   | 742    |   |  |  |   | 1,409  |   |  |  |   | 1,458  |   |  |  |   | 1,594  |   |  |  |   | 2,243  |     |  |  |   | 3,346  |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |      | Total Fixed
Charges                                                             |  |                        | $ | 6,308                  |   |                           |  | $                      | 12,752 |                        |  |      | $ | 24,787 |   |      |  | $    | 5,724  |      |  |  | $ | 11,526 |   |  |  | $ | 23,559 |   |  |  | $ | 19,981 |   |  |  | $ | 20,857 |   |  |  | $ | 25,539 |     |  |  | $ | 28,958 |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   | Less | Preferred Stock Dividends
Requirements of Central Hudson                        |  |                        |   | 300                    |   |                           |  |                        | 709    |                        |  |      |   | 1,378  |   |      |  |      | 308    |      |  |  |   | 742    |   |  |  |   | 1,409  |   |  |  |   | 1,458  |   |  |  |   | 1,594  |   |  |  |   | 2,243  |     |  |  |   | 3,346  |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |     
|F. |      | Total Earnings                                                                  |  |                        | $ | 12,932                 |   |                           |  | $                      | 53,947 |                        |  |      | $ | 95,511 |   |      |  | $    | 11,084 |      |  |  | $ | 47,604 |   |  |  | $ | 89,168 |   |  |  | $ | 89,980 |   |  |  | $ | 94,766 |   |  |  | $ | 99,487 |     |  |  | $ | 86,730 |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |     
|   |      | Preferred Dividend
Requirements:                                                |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|G. |      | Allowance for
Preferred Stock Dividends Under IRC Sec 247                       |  |                        | $ | 242                    |   |                           |  | $                      | 485    |                        |  |      | $ | 970    |   |      |  | $    | 242    |      |  |  | $ | 485    |   |  |  | $ | 970    |   |  |  | $ | 970    |   |  |  | $ | 970    |   |  |  | $ | 1,387  | (1) |  |  | $ | 2,161  |   | 
|H. |      | Less Allowable
Dividend Deduction                                               |  |                        |   | (32                    | ) |                           |  |                        | (64    | )                      |  |      |   | (127   | ) |      |  |      | (32    | )    |  |  |   | (64    | ) |  |  |   | (127   | ) |  |  |   | (127   | ) |  |  |   | (127   | ) |  |  |   | (127   | )   |  |  |   | (127   | ) | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|I. |      | Net Subject to
Gross-up                                                         |  |                        |   | 210                    |   |                           |  |                        | 421    |                        |  |      |   | 843    |   |      |  |      | 210    |      |  |  |   | 421    |   |  |  |   | 843    |   |  |  |   | 843    |   |  |  |   | 843    |   |  |  |   | 1,260  |     |  |  |   | 2,034  |   | 
|J. |      | Ratio of
Earnings before Income Taxes and Equity Inv. to Net Income
  (D/(A+B)) |  |                        |   | 1.275                  |   |                           |  |                        | 1.531  |                        |  |      |   | 1.484  |   |      |  |      | 1.315  |      |  |  |   | 1.611  |   |  |  |   | 1.521  |   |  |  |   | 1.579  |   |  |  |   | 1.740  |   |  |  |   | 1.679  |     |  |  |   | 1.583  |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|K. |      | Preferred
Dividend (Pre-tax) (I x J)                                            |  |                        |   | 268                    |   |                           |  |                        | 645    |                        |  |      |   | 1,251  |   |      |  |      | 276    |      |  |  |   | 678    |   |  |  |   | 1,282  |   |  |  |   | 1,331  |   |  |  |   | 1,467  |   |  |  |   | 2,116  |     |  |  |   | 3,219  |   | 
|L. |      | Plus Allowable
Dividend Deduction                                               |  |                        |   | 32                     |   |                           |  |                        | 64     |                        |  |      |   | 127    |   |      |  |      | 32     |      |  |  |   | 64     |   |  |  |   | 127    |   |  |  |   | 127    |   |  |  |   | 127    |   |  |  |   | 127    |     |  |  |   | 127    |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|M. |      | Preferred
Dividend Factor                                                       |  |                        |   | 300                    |   |                           |  |                        | 709    |                        |  |      |   | 1,378  |   |      |  |      | 308    |      |  |  |   | 742    |   |  |  |   | 1,409  |   |  |  |   | 1,458  |   |  |  |   | 1,594  |   |  |  |   | 2,243  |     |  |  |   | 3,346  |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|N. |      | Ratio of
Earnings to Fixed Charges (F/E)                                        |  |                        |   | 2.1                    |   |                           |  |                        | 4.2    |                        |  |      |   | 3.9    |   |      |  |      | 1.9    |      |  |  |   | 4.1    |   |  |  |   | 3.8    |   |  |  |   | 4.5    |   |  |  |   | 4.5    |   |  |  |   | 3.9    |     |  |  |   | 3.0    |   | 
|   |      |                                                                                 |  |                        |   |                        |   |                           |  |                        |        |                        |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 

|    |                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects SFAS No. 150
  titled Accounting for Certain Financial Instruments with Characteristics of
  both Liabilities and Equity, reclassification of $208,750 in preferred stock
  dividends to interest expense for the quarter ended September 30, 2003.
|    |                                                                                                                                                                                                                                                             
|(2) | The percentage of rent
  included in the fixed charges calculation is a reasonable approximation of
  the interest factor.                                                                                                                                  
|   
|64 

---



|                                                                 |                       
|---------------------------------------------------------------- | ----------------------
|CENTRAL
  HUDSON GAS & ELECTRIC CORPORATION                      | Exhibit
  (12) (i) (i)
|Computation
  of Ratio of Earnings to Fixed Charges              |                       
|and Ratio
  of Earnings to Fixed Charges and Preferred Dividends |                       

|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|-- |  | ------------------------------------------------------------------ |  | ------------------------------ | - | ------------------------------ | - | ------------------------------- |  | ------------------------------ | ------ | ------------------------------ |  | ---- | - | ------ | - | ---- |  | ---- | ------ | ---- |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | - |  |  | - | ------ | --- |  |  | - | ------ | - | 
|   |  |                                                                    |  | 2007                           |   | 2006                           |   | Year
  Ended December 31,       | 
|   |  |                                                                    |  |                                |   |                                |   |                                 | 
|   |  |                                                                    |  | 3
  Months 
  Ended 
  June 30 |   | 6
  Months 
  Ended 
  June 30 |   | 12
  Months 
  Ended 
  June 30 |  | 3
  Months 
  Ended 
  June 30 |        | 6
  Months 
  Ended 
  June 30 |  | 2006 |   | 2005   |   | 2004 |  | 2003 |        | 2002 | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      | 
|   |  | Earnings: ($000)                                                   |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   | 
|A. |  | Net
Income                                                         |  |                                | $ | 5,262                          |   |                                 |  | $                              | 18,633 |                                |  |      | $ | 36,327 |   |      |  | $    | 4,123  |      |  |  | $ | 17,177 |   |  |  | $ | 34,871 |   |  |  | $ | 35,635 |   |  |  | $ | 38,648 |   |  |  | $ | 38,875 |     |  |  | $ | 32,524 |   | 
|B. |  | Federal &
State Income Tax                                         |  |                                |   | 2,444                          |   |                                 |  |                                | 10,871 |                                |  |      |   | 19,843 |   |      |  |      | 2,979  |      |  |  |   | 12,556 |   |  |  |   | 21,528 |   |  |  |   | 23,936 |   |  |  |   | 28,426 |   |  |  |   | 26,981 |     |  |  |   | 21,690 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|C. |  | Earnings
before Income Taxes                                       |  |                                | $ | 7,706                          |   |                                 |  | $                              | 29,504 |                                |  |      | $ | 56,170 |   |      |  | $    | 7,102  |      |  |  | $ | 29,733 |   |  |  | $ | 56,399 |   |  |  | $ | 59,571 |   |  |  | $ | 67,074 |   |  |  | $ | 65,856 |     |  |  | $ | 54,214 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|D. |  | Fixed
Charges                                                      |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |  | Interest on
Mortgage Bonds                                         |  |                                |   | 0                              |   |                                 |  |                                | 0      |                                |  |      |   | 0      |   |      |  |      | 0      |      |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 0      |   |  |  |   | 570    |     |  |  |   | 2,136  |   | 
|   |  | Interest on
Other Long-Term Debt                                   |  |                                |   | 4,495                          |   |                                 |  |                                | 8,986  |                                |  |      |   | 17,387 |   |      |  |      | 4,071  |      |  |  |   | 8,024  |   |  |  |   | 16,425 |   |  |  |   | 13,826 |   |  |  |   | 11,488 |   |  |  |   | 10,699 |     |  |  |   | 9,819  |   | 
|   |  | Other
Interest                                                     |  |                                |   | 987                            |   |                                 |  |                                | 1,979  |                                |  |      |   | 3,858  |   |      |  |      | 846    |      |  |  |   | 1,743  |   |  |  |   | 3,622  |   |  |  |   | 2,577  |   |  |  |   | 5,517  |   |  |  |   | 9,828  | (1) |  |  |   | 11,772 |   | 
|   |  | Interest
Portion of Rents (2)                                      |  |                                |   | 197                            |   |                                 |  |                                | 417    |                                |  |      |   | 843    |   |      |  |      | 184    |      |  |  |   | 392    |   |  |  |   | 818    |   |  |  |   | 835    |   |  |  |   | 954    |   |  |  |   | 768    |     |  |  |   | 749    |   | 
|   |  | Amortization
of Premium & Expense on Debt                          |  |                                |   | 238                            |   |                                 |  |                                | 484    |                                |  |      |   | 985    |   |      |  |      | 245    |      |  |  |   | 490    |   |  |  |   | 991    |   |  |  |   | 1,043  |   |  |  |   | 1,066  |   |  |  |   | 1,159  |     |  |  |   | 1,249  |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |  | Total Fixed
Charges                                                |  |                                | $ | 5,917                          |   |                                 |  | $                              | 11,866 |                                |  |      | $ | 23,073 |   |      |  | $    | 5,346  |      |  |  | $ | 10,649 |   |  |  | $ | 21,856 |   |  |  | $ | 18,281 |   |  |  | $ | 19,025 |   |  |  | $ | 23,024 |     |  |  | $ | 25,725 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|E. |  | Total
Earnings                                                     |  |                                | $ | 13,623                         |   |                                 |  | $                              | 41,370 |                                |  |      | $ | 79,243 |   |      |  | $    | 12,448 |      |  |  | $ | 40,382 |   |  |  | $ | 78,255 |   |  |  | $ | 77,852 |   |  |  | $ | 86,099 |   |  |  | $ | 88,880 |     |  |  | $ | 79,939 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|   |  | Preferred Dividend
Requirements:                                   |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|F. |  | Allowance for
Preferred Stock Dividends
  Under IRC Sec 247        |  |                                | $ | 242                            |   |                                 |  | $                              | 485    |                                |  |      | $ | 970    |   |      |  | $    | 242    |      |  |  | $ | 485    |   |  |  | $ | 970    |   |  |  | $ | 970    |   |  |  | $ | 970    |   |  |  | $ | 1,387  | (1) |  |  | $ | 2,161  |   | 
|G. |  | Less Allowable
Dividend Deduction                                  |  |                                |   | (32                            | ) |                                 |  |                                | (64    | )                              |  |      |   | (127   | ) |      |  |      | (32    | )    |  |  |   | (64    | ) |  |  |   | (127   | ) |  |  |   | (127   | ) |  |  |   | (127   | ) |  |  |   | (127   | )   |  |  |   | (127   | ) | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|H. |  | Net Subject to
Gross-up                                            |  |                                |   | 210                            |   |                                 |  |                                | 421    |                                |  |      |   | 843    |   |      |  |      | 210    |      |  |  |   | 421    |   |  |  |   | 843    |   |  |  |   | 843    |   |  |  |   | 843    |   |  |  |   | 1,260  |     |  |  |   | 2,034  |   | 
|I. |  | Ratio of
Earnings before Income 
  Taxes to Net Income (C/A)       |  |                                |   | 1.464                          |   |                                 |  |                                | 1.583  |                                |  |      |   | 1.546  |   |      |  |      | 1.723  |      |  |  |   | 1.731  |   |  |  |   | 1.617  |   |  |  |   | 1.672  |   |  |  |   | 1.736  |   |  |  |   | 1.694  |     |  |  |   | 1.667  |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|J. |  | Pref. Dividend
(Pre-tax) (H x I)                                   |  |                                |   | 307                            |   |                                 |  |                                | 666    |                                |  |      |   | 1,303  |   |      |  |      | 362    |      |  |  |   | 729    |   |  |  |   | 1,363  |   |  |  |   | 1,409  |   |  |  |   | 1,463  |   |  |  |   | 2,134  |     |  |  |   | 3,391  |   | 
|K. |  | Plus Allowable
Dividend Deduction                                  |  |                                |   | 32                             |   |                                 |  |                                | 64     |                                |  |      |   | 127    |   |      |  |      | 32     |      |  |  |   | 64     |   |  |  |   | 127    |   |  |  |   | 127    |   |  |  |   | 127    |   |  |  |   | 127    |     |  |  |   | 127    |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|L. |  | Preferred
Dividend Factor                                          |  |                                |   | 339                            |   |                                 |  |                                | 730    |                                |  |      |   | 1,430  |   |      |  |      | 394    |      |  |  |   | 793    |   |  |  |   | 1,490  |   |  |  |   | 1,536  |   |  |  |   | 1,590  |   |  |  |   | 2,261  |     |  |  |   | 3,518  |   | 
|M. |  | Fixed Charges
(D)                                                  |  |                                |   | 5,917                          |   |                                 |  |                                | 11,866 |                                |  |      |   | 23,073 |   |      |  |      | 5,346  |      |  |  |   | 10,649 |   |  |  |   | 21,856 |   |  |  |   | 18,281 |   |  |  |   | 19,025 |   |  |  |   | 23,024 |     |  |  |   | 25,725 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|N. |  | Total Fixed
Charges and Preferred Dividends                        |  |                                | $ | 6,256                          |   |                                 |  | $                              | 12,596 |                                |  |      | $ | 24,503 |   |      |  | $    | 5,740  |      |  |  | $ | 11,442 |   |  |  | $ | 23,346 |   |  |  | $ | 19,817 |   |  |  | $ | 20,615 |   |  |  | $ | 25,285 |     |  |  | $ | 29,243 |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|O. |  | Ratio of
Earnings to Fixed Charges (E/D)                           |  |                                |   | 2.3                            |   |                                 |  |                                | 3.5    |                                |  |      |   | 3.4    |   |      |  |      | 2.3    |      |  |  |   | 3.8    |   |  |  |   | 3.6    |   |  |  |   | 4.3    |   |  |  |   | 4.5    |   |  |  |   | 3.9    |     |  |  |   | 3.1    |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 
|P. |  | Ratio of
Earnings to Fixed Charges and
  Preferred Dividends (E/N) |  |                                |   | 2.2                            |   |                                 |  |                                | 3.3    |                                |  |      |   | 3.2    |   |      |  |      | 2.2    |      |  |  |   | 3.5    |   |  |  |   | 3.4    |   |  |  |   | 3.9    |   |  |  |   | 4.2    |   |  |  |   | 3.5    |     |  |  |   | 2.7    |   | 
|   |  |                                                                    |  |                                |   |                                |   |                                 |  |                                |        |                                |  |      |   |        |   |      |  |      |        |      |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |   |  |  |   |        |     |  |  |   |        |   | 

|    |                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects SFAS No. 150,
  titled Accounting for Certain Financial Instruments with Characteristics of
  both Liabilities and Equity, reclassification of $208,750 in preferred stock
  dividends to interest expense for the quarter ended September 30, 2003.
|    |                                                                                                                                                                                                                                                              
|(2) | The percentage of rent included in the fixed charges
  calculation is a reasonable approximation of the interest factor.                                                                                                                                     
|   
|65 

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