**EXHIBIT 12**

 

**CASCADE NATURAL GAS CORPORATION**

**COMPUTATION OF RATIO OF EARNINGS TO FIXEDCHARGES**

**AND PREFERRED DIVIDEND REQUIREMENTS**

 
|                                                                    |   | **Twelve  Months Ended**    |       |
|-------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                    |   | **30-Sep-03**               |       | **30-Sep-02** |   | **30-Sep-01** |   | **30-Sep-00** |   | **30-Sep-99** |   |
|                                                                    |   | **(dollars  in thousands)** | ** ** |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Fixed  charges, as defined:                                             |   |                        |       |   |   |   |   |   |   |   |   |
| Interest  expense                                                       |   | $                           | 12,363     |   | $ | 12,384 |   | $ | 10,509 |   | $ | 10,936 |   | $ | 10,486 |   |
| Amortization  of debt issuance expense                                  |   | 696                         |       | 652 |   | 607 |   | 607 |   | 603 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Total  fixed charges                                                    |   | $                           | 13,059     |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,543 |   | $ | 11,089 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Earnings,  as defined:                                                  |   |                        |       |   |   |   |   |   |   |   |   |
| Net  income                                                             |   | $                           | 9,104      |   | $ | 10,762 |   | $ | 17,236 |   | $ | 15,374 |   | $ | 14,053 |   |
| Add  (deduct):                                                          |   |                        |       |   |   |   |   |   |   |   |   |
| Income  taxes                                                           |   | 4,733                       |       | 5,781 |   | 9,278 |   | 9,051 |   | 8,075 |   |
| Fixed  charges                                                          |   | 13,059                      |       | 13,036 |   | 11,116 |   | 11,543 |   | 11,089 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Total  earnings                                                         |   | $                           | 26,896     |   | $ | 29,579 |   | $ | 37,630 |   | $ | 35,968 |   | $ | 33,217 |   |
| Ratio  of earnings to fixed charges                                     |   | 2.06                        |       | 2.27 |   | 3.39 |   | 3.12 |   | 3.00 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Fixed  charges and preferred dividend requirements:                     |   |                        |       |   |   |   |   |   |   |   |   |
| Fixed  charges                                                          |   | $                           | 13,059     |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,543 |   | $ | 11,089 |   |
| Preferred  dividend requirements                                        |   | —                      |       | — |   | — |   | 6 |   | 756 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Total                                                                   |   | $                           | 13,059     |   | $ | 13,036 |   | $ | 11,116 |   | $ | 11,549 |   | $ | 11,845 |   |
|                                                                    |   |                        |       |   |   |   |   |   |   |   |   |
| Ratio  of earnings to fixed charges and preferred dividend requirements |   | 2.06                        |       | 2.27 |   | 3.39 |   | 3.12 |   | 2.80 |   |

 

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