Exhibit 12.3
WISCONSIN POWER AND LIGHT COMPANY
RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
| Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Net income | $ | 151.0 | $ | 177.5 | $ | 165.7 | $ | 163.5 | $ | 152.3 | $ | 89.5 | ||||||||||||
Income taxes (a) | 68.0 | 87.2 | 94.6 | 81.9 | 98.3 | 45.8 | ||||||||||||||||||
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Income before income taxes | 219.0 | 264.7 | 260.3 | 245.4 | 250.6 | 135.3 | ||||||||||||||||||
Fixed charges as defined | 64.1 | 86.4 | 103.9 | 103.3 | 101.6 | 99.9 | ||||||||||||||||||
Adjustment for undistributed equity earnings | (7.0 | ) | (8.3 | ) | (7.9 | ) | (6.4 | ) | (5.6 | ) | (7.1 | ) | ||||||||||||
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Total earnings as defined | $ | 276.1 | $ | 342.8 | $ | 356.3 | $ | 342.3 | $ | 346.6 | $ | 228.1 | ||||||||||||
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FIXED CHARGES: | ||||||||||||||||||||||||
Interest expense | $ | 63.2 | $ | 85.0 | $ | 80.2 | $ | 79.9 | $ | 78.6 | $ | 74.8 | ||||||||||||
Estimated interest component of rent expense | 0.9 | 1.4 | 23.7 | 23.4 | 23.0 | 25.1 | ||||||||||||||||||
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Total fixed charges as defined | $ | 64.1 | $ | 86.4 | $ | 103.9 | $ | 103.3 | $ | 101.6 | $ | 99.9 | ||||||||||||
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Ratio of Earnings to Fixed Charges | 4.31 | 3.97 | 3.43 | 3.31 | 3.41 | 2.28 | ||||||||||||||||||
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Preferred dividend requirements (pre-tax basis) (b) | $ | 0.0 | $ | 0.9 | $ | 5.2 | $ | 5.0 | $ | 5.4 | $ | 5.0 | ||||||||||||
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Fixed charges and preferred dividend requirements | $ | 64.1 | $ | 87.3 | $ | 109.1 | $ | 108.3 | $ | 107.0 | $ | 104.9 | ||||||||||||
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Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 4.31 | 3.93 | 3.27 | 3.16 | 3.24 | 2.17 | ||||||||||||||||||
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| (a) | Includes net interest related to unrecognized tax benefits. |
| (b) | Preferred dividend requirements (pre-tax basis) are computed by dividing the preferred dividend requirements by one hundred percent minus the respective year-to-date effective income tax rate. Excludes the impact of charges related to Wisconsin Power and Light Company’s preferred stock redemption in 2013. |
