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 Sep. 30, | Years Ended Dec. 31, | ||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||
(dollars in millions) | |||||||||||||||
EARNINGS: | |||||||||||||||
Net income | $84.0 | $73.2 | $105.3 | $105.1 | $113.7 | $114.9 | $80.9 | ||||||||
Income taxes (a) | 45.2 | 44.1 | 62.2 | 60.9 | 66.3 | 65.8 | 44.7 | ||||||||
Income before income taxes | 129.2 | 117.3 | 167.5 | 166.0 | 180.0 | 180.7 | 125.6 | ||||||||
Fixed charges as defined | 65.4 | 65.5 | 81.9 | 73.9 | 56.6 | 47.7 | 49.2 | ||||||||
Adjustment for undistributed equity earnings | (4.4 | ) | (3.5 | ) | (3.8 | ) | (1.6 | ) | (4.5 | ) | (6.7 | ) | (3.8 | ) | |
Total earnings as defined | $190.2 | $179.3 | $245.6 | $238.3 | $232.1 | $221.7 | $171.0 | ||||||||
FIXED CHARGES: | |||||||||||||||
Interest expense | $35.7 | $36.3 | $48.3 | $40.4 | $33.5 | $37.9 | $40.2 | ||||||||
Estimated interest component of rent expense | 29.7 | 29.2 | 33.6 | 33.5 | 23.1 | 9.8 | 9.0 | ||||||||
Total fixed charges as defined | $65.4 | $65.5 | $81.9 | $73.9 | $56.6 | $47.7 | $49.2 | ||||||||
Ratio of Earnings to Fixed Charges | 2.91 | 2.74 | 3.00 | 3.22 | 4.10 | 4.65 | 3.48 | ||||||||
Preferred dividend requirements (pre-tax basis) (b) | $3.8 | $4.0 | $5.2 | $5.2 | $5.2 | $5.2 | $5.1 | ||||||||
Fixed charges and preferred dividend requirements | $69.2 | $69.5 | $87.1 | $79.1 | $61.8 | $52.9 | $54.3 | ||||||||
Ratio of Earnings to Combined Fixed Charges and | |||||||||||||||
Preferred Dividend Requirements | 2.75 | 2.58 | 2.82 | 3.01 | 3.76 | 4.19 | 3.15 | ||||||||
(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.