Exhibit 12
WISCONSIN PUBLIC SERVICE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS
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| Nine Months Ended |
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| September 30 |
| For the Years Ended December 31 |
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(Millions, except ratio) |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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EARNINGS |
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Net income from continuing operations |
| $ | 109.5 |
| $ | 125.9 |
| $ | 135.0 |
| $ | 120.4 |
| $ | 132.3 |
| $ | 113.3 |
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Provision for income taxes |
| 48.1 |
| 73.2 |
| 78.0 |
| 68.0 |
| 73.1 |
| 66.8 |
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Income from continuing operations before income taxes |
| 157.6 |
| 199.1 |
| 213.0 |
| 188.4 |
| 205.4 |
| 180.1 |
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Less: Undistributed earnings of less than 50% owned affiliates |
| (1.5 | ) | (1.8 | ) | (1.7 | ) | (1.8 | ) | (2.2 | ) | (2.5 | ) | ||||||
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Adjusted income from continuing operations before income taxes |
| 156.1 |
| 197.3 |
| 211.3 |
| 186.6 |
| 203.2 |
| 177.6 |
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Total fixed charges as defined |
| 33.5 |
| 51.3 |
| 56.9 |
| 58.5 |
| 48.1 |
| 45.3 |
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Total earnings as defined |
| $ | 189.6 |
| $ | 248.6 |
| $ | 268.2 |
| $ | 245.1 |
| $ | 251.3 |
| $ | 222.9 |
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FIXED CHARGES |
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Interest expense |
| $ | 31.9 |
| $ | 49.5 |
| $ | 54.4 |
| $ | 54.0 |
| $ | 44.0 |
| $ | 43.5 |
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Allowance for funds used during construction |
| 0.5 |
| 0.2 |
| 0.3 |
| 2.0 |
| 1.8 |
| 0.3 |
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Interest factor applicable to rentals |
| 1.1 |
| 1.6 |
| 2.2 |
| 2.5 |
| 2.3 |
| 1.5 |
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Total fixed charges as defined |
| $ | 33.5 |
| $ | 51.3 |
| $ | 56.9 |
| $ | 58.5 |
| $ | 48.1 |
| $ | 45.3 |
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Preferred stock dividend requirements * |
| 3.5 |
| 5.2 |
| 5.2 |
| 4.9 |
| 4.8 |
| 4.9 |
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Total fixed charges and preferred stock dividend requirements |
| $ | 37.0 |
| $ | 56.5 |
| $ | 62.1 |
| $ | 63.4 |
| $ | 52.9 |
| $ | 50.2 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| 5.7 |
| 4.8 |
| 4.7 |
| 4.2 |
| 5.2 |
| 4.9 |
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RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS |
| 5.1 |
| 4.4 |
| 4.3 |
| 3.9 |
| 4.7 |
| 4.4 |
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* Represents preferred stock dividend requirements of WPS computed by dividing the preferred stock dividend requirements by 100% minus the income tax rate.