EXHIBIT 12

CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED
CHARGES AND PREFERRED DIVIDEND REQUIREMENTS

|                                                                       |                                       | Twelve Months Ended September 30,
|---------------------------------------------------------------------- | ------------------------------------- | ---------------------------------
|
|
|Fixed charges, as defined:                                             |                                       |                                  
|                                                                       | Interest expense                      |                                  
|                                                                       | Amortization of debt issuance expense |                                  
|                                                                       |                                       |                                  
|                                                                       |                                       | Total fixed charges              
|                                                                       |                                       |                                  
|Earnings, as defined:                                                  |                                       |                                  
|                                                                       | Net earnings                          |                                  
|                                                                       | Add (deduct):                         |                                  
|                                                                       |                                       | Income taxes                     
|                                                                       |                                       | Fixed charges                    
|                                                                       |                                       |                                  
|                                                                       |                                       |                                  
|                                                                       |                                       |                                  
|Ratio of earnings to fixed charges                                     |                                       |                                  
|                                                                       |                                       |                                  
|Fixed charges and preferred dividend requirements:                     |                                       |                                  
|                                                                       | Fixed charges                         |                                  
|                                                                       | Preferred dividend requirements       |                                  
|                                                                       |                                       |                                  
|                                                                       |                                       | Total                            
|                                                                       |                                       |                                  
|Ratio of earnings to fixed charges and preferred dividend requirements |                                       |                                  
|                                                                       |                                       |                                  

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