EXHIBIT 12

<TABLE>
<CAPTION>

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                -------------------------------------------------
                          (In Thousands, Except Ratios)

                                                   Year Ended December 31
                                     -----------------------------------------------
Earnings:                            2000(1)     1999      1998    1997(2)     1996
                                     -------   -------   -------   -------   -------
<S>                                  <C>       <C>       <C>       <C>       <C>
   Net income                        $11,209   $29,742   $26,825   $13,648   $36,121
      Income taxes                     7,251    16,734    14,058     7,813    21,637
      Fixed charges (see below)       22,740    17,691    16,133    17,782    17,154
                                     -------   -------   -------   -------   -------
          Total adjusted earnings    $41,200   $64,167   $57,016   $39,243   $74,912
                                     -------   -------   -------   -------   -------

Fixed charges:
   Total interest expense            $22,409   $16,969   $15,802   $17,049   $16,200
   Interest component of rents           331       722       331       733       954
                                     -------   -------   -------   -------   -------
          Total fixed charges        $22,740   $17,691   $16,133   $17,782   $17,154
                                     -------   -------   -------   -------   -------

Ratio of earnings to fixed charges       1.8       3.6       3.5       2.2       4.4
                                     =======   =======   =======   =======   =======
</TABLE>


(1)  Merger and integration related costs incurred for the year ended December
     31,2000 totaled $16.8 million. These costs relate primarily to transaction
     costs, severance and other merger and acquisition integration activities.

     As a result of merger integration activities, management has identified
     certain information systems that are expected to be retired in 2001.
     Accordingly, the useful lives of these assets have been shortened to
     reflect this decision. These information system assets are owned by a
     wholly owned subsidiary of Vectren and the fees allocated by the subsidiary
     for the use of these systems by Indiana Gas are reflected in operation and
     maintenance expenses in the accompanying financial statements. As a result
     of the shortened useful lives, additional fees were incurred by Indiana Gas
     during 2000, resulting in an increase in operation and maintenance expense
     of $11.4 million.

     In total, merger and integration related costs incurred for the year ended
     December 31,2000 were $28.2 million ($19.5 million after tax). Indiana Gas'
     ratio of earnings to fixed charges for 2000 before merger and integration
     charges was 2.7.

(2)  The Indiana Gas Board of Directors authorized management to undertake the
     actions necessary and appropriate to restructure Indiana Gas 'operations
     and recognize a resulting restructuring charge of $39.5 million ($24.5
     million after tax) which included estimated costs related to involuntary
     workforce reductions. Indiana Gas' ratio of earnings to fixed charges for
     1997 before restructuring costs was 4.4.