EXHIBIT 12
BLACK HILLS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
| Year Ended | Three Months Ended | ||||||||||||
| December 31, | March 31, | ||||||||||||
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| 2008 | 2007 | 2006 | 2005 | 2004 | 2009 | 2008 | |||||||
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Earnings as defined in Regulation S-K – |
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Income (loss) from continuing operations | $ | (52,037) | $ | 75,658 | $ | 55,772 | $ | 50,072 | $ | 44,608 | $ | 25,625 | $ | 11,816 |
Income tax expense (benefit) |
| (29,395) |
| 32,427 |
| 23,103 |
| 26,633 |
| 19,713 |
| 6,023 |
| 5,801 |
(Income) loss from equity investee |
| (4,366) |
| 1,231 |
| (1,653) |
| (14,325) |
| 386 |
| 327 |
| (232) |
Income (loss) from continuing operations |
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before non-controlling interest in subsidiaries, |
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earnings from equity investees, and income taxes |
| (85,798) |
| 109,316 |
| 77,222 |
| 62,380 |
| 64,707 |
| 31,975 |
| 17,385 |
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Fixed charges |
| 59,392 |
| 34,520 |
| 35,018 |
| 28,122 |
| 25,210 |
| 20,219 |
| 10,222 |
Amortization of capitalized interest |
| 48 |
| 93 |
| 63 |
| — |
| — |
| 1 |
| 4 |
Distributed income of equity investees |
| 1,781 |
| 3,724 |
| 4,304 |
| 12,956 |
| 3,762 |
| 2,360 |
| 1,473 |
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Interest capitalized |
| (1,318) |
| (2,323) |
| (1,571) |
| — |
| — |
| (93) |
| (384) |
Preference security dividend requirements |
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of consolidated subsidiaries |
| — |
| — |
| — |
| (241) |
| (472) |
| — |
| — |
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Earnings as defined | $ | (25,895) | $ | 145,330 | $ | 115,036 | $ | 103,217 | $ | 93,207 | $ | 54,462 | $ | 28,700 |
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Fixed Charges as defined in Regulation S-K – |
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Interest expense | $ | 54,123 | $ | 25,181 | $ | 29,946 | $ | 26,607 | $ | 24,021 | $ | 18,901 | $ | 9,194 |
AFUDC interest |
| 2,811 |
| 6,415 |
| 2,972 |
| 694 |
| 165 |
| 838 |
| 335 |
Interest capitalized |
| 1,318 |
| 2,323 |
| 1,571 |
| — |
| — |
| 93 |
| 384 |
Estimate of interest within rental expense |
| 1,140 |
| 601 |
| 529 |
| 580 |
| 552 |
| 387 |
| 309 |
Fixed Charges as defined |
| 59,392 |
| 34,520 |
| 35,018 |
| 27,881 |
| 24,738 |
| 20,219 |
| 10,222 |
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Preference security dividend requirements |
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of consolidated subsidiaries |
| — |
| — |
| — |
| 241 |
| 472 |
| — |
| — |
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Fixed Charges and Preference Security |
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Dividend as defined | $ | 59,392 | $ | 34,520 | $ | 35,018 | $ | 28,122 | $ | 25,210 | $ | 20,219 | $ | 10,222 |
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Ratio of Earnings to Fixed Charges(a) |
| (0.44) |
| 4.21 |
| 3.29 |
| 3.70 |
| 3.77 |
| 2.69 |
| 2.81 |
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Ratio of Earnings to Fixed Charges and |
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Preference Security Dividend(a) |
| (0.44) |
| 4.21 |
| 3.29 |
| 3.67 |
| 3.70 |
| 2.69 |
| 2.81 |
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(a) | The earnings as defined in 2008 would need to increase $85.3 million for the 2008 ratios to be 1.0. |