| **Nicor                      Gas Company**                                                                   |
|--------------------------------------------------------------------------------------------------------------|
| **Computation                      of Consolidated Ratio of Earnings to Fixed                      Charges** |
| (thousands)                                                                                                  |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **Three** |   | **Twelve** |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **months                      ended** |   | **months                      ended** |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **September                      30,** |   | **September                      30,** |   | Year                      Ended December 31 |   |
|                                                                                                         |   | **2006** |   | **2006** |   | 2005 |   | 2004 |   | 2003 |   | 2002 |   | 2001 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                      available to cover fixed charges:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      income                                                                              |   | **$** | **(1,680** | **)** | **$** | **59,620** |   | $ | 53,476 |   | $ | 62,106 |   | $ | 83,000 |   | $ | 109,139 |   | $ | 98,806 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add:   Income                      tax expense                                                |   |   | **(912** | **)** |   | **28,952** |   |   | 26,128 |   |   | 33,108 |   |   | 48,035 |   |   | 64,325 |   |   | 57,000 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed                      charges                                                                      |   |   | **10,433** |   |   | **44,484** |   |   | 43,203 |   |   | 37,555 |   |   | 37,047 |   |   | 36,711 |   |   | 45,431 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                      for funds                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        used during construction and other                                          |   |   | **(59** | **)** |   | **(969** | **)** |   | (1,038 | ) |   | (363 | ) |   | (220 | ) |   | (395 | ) |   | (241 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **$** | **7,782** |   | **$** | **132,087** |   | $ | 121,769 |   | $ | 132,406 |   | $ | 167,862 |   | $ | 209,780 |   | $ | 200,996 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed                      charges:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                      on debt                                                                        |   | **$** | **7,895** |   | **$** | **37,634** |   | $ | 36,487 |   | $ | 35,606 |   | $ | 33,934 |   | $ | 33,037 |   | $ | 43,542 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                      interest charges and                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        amortization of debt discount,                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        premium, and expense, net                                                        |   |   | **2,538** |   |   | **6,850** |   |   | 6,716 |   |   | 1,949 |   |   | 3,113 |   |   | 3,674 |   |   | 1,889 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **$** | **10,433** |   | **$** | **44,484** |   | $ | 43,203 |   | $ | 37,555 |   | $ | 37,047 |   | $ | 36,711 |   | $ | 45,431 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                      of earnings to fixed charges                                                      |   |   | **0.75** |   |   | **2.97** |   |   | 2.82 |   |   | 3.53 |   |   | 4.53 |   |   | 5.71 |   |   | 4.42 |   |