EXHIBIT 12


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

                                        Year Ended December 31

Earnings:                              2000(1)     1999     1998
                                      --------  -------  -------
Net income                             $10,318  $29,742  $26,825
Income taxes                             7,251   16,734   14,058
Fixed charges (see below)               22,740   17,691   16,133
                                      --------  -------  -------
Total adjusted earnings                $40,309  $64,167  $57,016
                                      --------  -------  -------
Fixed charges:
Total interest expense                 $22,409  $16,969  $15,802
Interest component of rents                331      722      331
                                      --------  -------  -------
Total fixed charges                    $22,740  $17,691  $16,133
                                      --------  -------  -------
Ratio of earnings to fixed charges         1.8      3.6      3.5
                                      ========  =======  =======


                                          Year Ended December 31

Earnings:                                     1997(2)       1996
                                             --------    -------
Net income                                    $13,648    $36,121
Income taxes                                    7,813     21,637
Fixed charges (see below)                      17,782     17,154
                                              -------    -------
Total adjusted earnings                       $39,243    $74,912
                                              -------    -------
Fixed charges:
Total interest expense                        $17,049    $16,200
Interest component of rents                       733        954
                                              -------    -------
Total fixed charges                           $17,782    $17,154
                                              -------    -------
Ratio of earnings to fixed charges                2.2        4.4
                                              =======    =======



(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 restructuring charges was
     2.6.

(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.