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, | |||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Net income | $ | 133.4 | $ | 192.8 | $ | 177.6 | $ | 181.1 | $ | 179.1 | $ | 172.7 | ||||||||||||
Income taxes (a) | 60.1 | 93.3 | 82.9 | 85.3 | 85.6 | 87.6 | ||||||||||||||||||
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Income before income taxes | 193.5 | 286.1 | 260.5 | 266.4 | 264.7 | 260.3 | ||||||||||||||||||
Fixed charges as defined | 70.1 | 92.7 | 93.7 | 87.7 | 86.4 | 103.9 | ||||||||||||||||||
Adjustment for undistributed equity earnings | (0.3 | ) | (11.5 | ) | (4.5 | ) | (6.4 | ) | (8.3 | ) | (7.9 | ) | ||||||||||||
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Total earnings as defined | $ | 263.3 | $ | 367.3 | $ | 349.7 | $ | 347.7 | $ | 342.8 | $ | 356.3 | ||||||||||||
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FIXED CHARGES: | ||||||||||||||||||||||||
Interest expense | $ | 69.1 | $ | 91.4 | $ | 92.4 | $ | 86.4 | $ | 85.0 | $ | 80.2 | ||||||||||||
Estimated interest component of rent expense | 1.0 | 1.3 | 1.3 | 1.3 | 1.4 | 23.7 | ||||||||||||||||||
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Total fixed charges as defined | $ | 70.1 | $ | 92.7 | $ | 93.7 | $ | 87.7 | $ | 86.4 | $ | 103.9 | ||||||||||||
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Ratio of Earnings to Fixed Charges | 3.76 | 3.96 | 3.73 | 3.96 | 3.97 | 3.43 | ||||||||||||||||||
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Preferred dividend requirements(pre-tax basis) (b) | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.9 | $ | 5.2 | ||||||||||||
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Fixed charges and preferred dividend requirements | $ | 70.1 | $ | 92.7 | $ | 93.7 | $ | 87.7 | $ | 87.3 | $ | 109.1 | ||||||||||||
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Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 3.76 | 3.96 | 3.73 | 3.96 | 3.93 | 3.27 | ||||||||||||||||||
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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 respectiveyear-to-date effective income tax rate. Excludes the impact of charges related to Wisconsin Power and Light Company’s preferred stock redemption in 2013. |
