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
| Six Months | |||||||||
| Ended June 30, | Years Ended December 31, | ||||||||
| 2006 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | |||
| (dollars in millions) | |||||||||
| EARNINGS: | |||||||||
| Net income | $50.6 | $39.5 | $105.1 | $113.7 | $114.9 | $80.9 | $73.5 | ||
| Income taxes | 31.2 | 23.7 | 60.9 | 66.3 | 65.8 | 44.7 | 41.2 | ||
| Income before income taxes | 81.8 | 63.2 | 166.0 | 180.0 | 180.7 | 125.6 | 114.7 | ||
| Fixed charges as defined | 40.9 | 33.5 | 73.9 | 56.6 | 47.7 | 49.2 | 51.6 | ||
| Adjustment for undistributed equity earnings | (2.9) | - | (1.6) | (4.5) | (6.7) | (3.8) | (7.1) | ||
| Total earnings as defined | $119.8 | $96.7 | $238.3 | $232.1 | $221.7 | $171.0 | $159.2 | ||
| FIXED CHARGES: | |||||||||
| Interest expense | $24.7 | $18.9 | $40.4 | $33.5 | $37.9 | $40.2 | $43.5 | ||
| Estimated interest component of rent expense | 16.2 | 14.6 | 33.5 | 23.1 | 9.8 | 9.0 | 8.1 | ||
| Total fixed charges as defined | $40.9 | $33.5 | $73.9 | $56.6 | $47.7 | $49.2 | $51.6 | ||
| Ratio of Earnings to Fixed Charges (Unaudited) | 2.93 | 2.89 | 3.22 | 4.10 | 4.65 | 3.48 | 3.09 | ||
| Preferred dividend requirements (pre-tax basis) * | $2.7 | $2.7 | $5.2 | $5.2 | $5.2 | $5.1 | $5.1 | ||
| Fixed charges and preferred dividend requirements | $43.6 | $36.2 | $79.1 | $61.8 | $52.9 | $54.3 | $56.7 | ||
| Ratio of Earnings to Combined Fixed Charges and | |||||||||
| Preferred Dividend Requirements (Unaudited) | 2.75 | 2.67 | 3.01 | 3.76 | 4.19 | 3.15 | 2.81 | ||
* 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.