EXHIBIT 12.1
WISCONSIN ELECTRIC POWER COMPANY
STATEMENT OF COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine | | | | | | | | | | | | |
| | Months | | | | | | | | | | | | |
| | Ended | | Twelve Months Ended |
| | 9/30/2012 | | 9/30/2012 | | 12/31/2011 | | 12/31/2010 | | 12/31/2009 | | 12/31/2008 | | 12/31/2007 |
| | (Millions of Dollars) |
| | | | | | | | | | | | | | |
| Pre-tax Income | $ | 484.2 |
| | $ | 585.4 |
| | $ | 485.2 |
| | $ | 470.8 |
| | $ | 435.3 |
| | $ | 439.4 |
| | $ | 468.7 |
|
| | | | | | | | | | | | | | |
| Subtract: | | | | | | | | | | | | | |
| Capitalized Interest | (13.1 | ) | | (20.5 | ) | | (24.7 | ) | | (13.5 | ) | | (6.6 | ) | | (3.0 | ) | | (1.8 | ) |
| Earnings Before Adding Fixed Charges (a) | 471.1 |
| | 564.9 |
| | 460.5 |
| | 457.3 |
| | 428.7 |
| | 436.4 |
| | 466.9 |
|
| | | | | | | | | | | | | | |
| Fixed Charges | | | | | | | | | | | | | |
| Interest on Long-Term Debt | 92.3 |
| | 123.2 |
| | 116.7 |
| | 113.7 |
| | 104.2 |
| | 77.7 |
| | 82.6 |
|
| Other Interest Expense | 1.5 |
| | 1.9 |
| | 2.2 |
| | 1.3 |
| | 2.7 |
| | 11.9 |
| | 12.2 |
|
| Estimated Interest Component of Rentals | 106.4 |
| | 141.5 |
| | 141.3 |
| | 107.1 |
| | 65.6 |
| | 57.6 |
| | 48.5 |
|
| Total Fixed Charges as Defined (b) | 200.2 |
| | 266.6 |
| | 260.2 |
| | 222.1 |
| | 172.5 |
| | 147.2 |
| | 143.3 |
|
| | | | | | | | | | | | | | |
| Total Earnings as Defined | $ | 671.3 |
| | $ | 831.5 |
| | $ | 720.7 |
| | $ | 679.4 |
| | $ | 601.2 |
| | $ | 583.6 |
| | $ | 610.2 |
|
| | | | | | | | | | | | | | |
| Ratio of Earnings to Fixed Charges | 3.4x |
| | 3.1x |
| | 2.8x |
| | 3.1x |
| | 3.5x |
| | 4.0x |
| | 4.3x |
|
| | | | | | | | | | | | | | |
| (a) Earnings before adding fixed charges is determined by starting with pre-tax income (less undistributed equity in earnings of unconsolidated affiliates) |
| and subtracting capitalized interest. |
| | | | | | | | | | | | | | |
| (b) Fixed Charges consist of interest charges on our long-term debt and short-term borrowings (including a representative portion of lease expense), |
| capitalized interest and amortization of debt expense. |
