**Ex.      12**

**VECTREN      UTILITY HOLDINGS, INC.**

**COMPUTATION      OF RATIO OF EARNINGS TO FIXED CHARGES**

**(In      Thousands, Except Ratio)**

|                                                                                                                  |   | Year                  Ended December 31 |    |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                                  |   | 2005                                    |    | 2004 |   | 2003 |   | 2002 |   | 2001(1) |   |
|                                                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |
| Earnings:                  (2)                                                                                        |   |                                    |    |   |   |   |   |   |   |   |   |
|                     Net income (3)                                                                          |   | $                                       | 95,128  |   | $ | 83,146 |   | $ | 85,587 |   | $ | 97,137 |   | $ | 44,495 |   |
|                     Income taxes                                                                            |   |                                    | 57,500  |   |   | 53,035 |   |   | 51,582 |   |   | 46,772 |   |   | 21,309 |   |
| Equity                  in losses (income) of equity investee, net                    of distributions |   |                                    | -       |   |   | (128 | ) |   | 511 |   |   | 1,859 |   |   | 463 |   |
|                     Fixed Charges (See Below) (4)                                                           |   |                                    | 71,007  |   |   | 68,363 |   |   | 66,699 |   |   | 70,693 |   |   | 72,709 |   |
|                     Less: Preferred stock dividend                                                          |   |                                    | 4       |   |   | 13 |   |   | 23 |   |   | 32 |   |   | 758 |   |
|                        Total adjusted earnings                                               |   | $                                       | 223,631 |   | $ | 204,403 |   | $ | 204,356 |   | $ | 216,429 |   | $ | 138,218 |   |
| Fixed                  charges: (4)                                                                                   |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Total interest expense                                                                  |   | $                                       | 69,942  |   | $ | 67,408 |   | $ | 66,135 |   | $ | 69,119 |   | $ | 70,745 |   |
|                     Interest component of rents                                                             |   |                                    | 1,061   |   |   | 942 |   |   | 541 |   |   | 1,542 |   |   | 1,206 |   |
|                     Preferred stock dividend                                                                |   |                                    | 4       |   |   | 13 |   |   | 23 |   |   | 32 |   |   | 758 |   |
|                        Total fixed charges                                                   |   | $                                       | 71,007  |   | $ | 68,363 |   | $ | 66,699 |   | $ | 70,693 |   | $ | 72,709 |   |
|                                                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                  of earnings to fixed charges                                                                   |   |                                    | 3.1     |   |   | 3.0 |   |   | 3.1 |   |   | 3.1 |   |   | 1.9 |   |

| (1)   | Merger                and integration related costs incurred for the year ended December                31,                2001 totaled $2.8 million. These costs relate primarily to employee                and                executive severance, transaction costs, and other merger, integration                and                restructuring activities. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For                the purposes of computing these ratios, earnings consist of pretax                net                income before income (losses) from equity investees, fixed charges,                and                less preferred stock dividends of a consolidated subsidiary. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Net                income, as defined, is before preferred stock dividend requirement                of                subsidiary and cumulative effect of change in accounting                principle |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Fixed                charges consist of total interest, amortization of debt discount,                premium                and expense, the estimated portion of interest implicit in rentals,                and                preferred stock dividends of a consolidated                subsidiary. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|