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, | ||||||||||||||
2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
(dollars in millions) | |||||||||||||||
EARNINGS: | |||||||||||||||
Net income | $94 | .1 | $84.0 | $113 | .5 | $105 | .3 | $105 | .1 | $113 | .7 | $114 | .9 | ||
Income taxes (a) | 54 | .1 | 45.2 | 59 | .3 | 62 | .2 | 60 | .9 | 66 | .3 | 65 | .8 | ||
Income before income taxes | 148 | .2 | 129.2 | 172 | .8 | 167 | .5 | 166 | .0 | 180 | .0 | 180 | .7 | ||
Fixed charges as defined | 69 | .0 | 65.4 | 84 | .8 | 81 | .9 | 73 | .9 | 56 | .6 | 47 | .7 | ||
Adjustment for undistributed equity earnings | (4 | .0) | (4.4) | (6 | .7) | (3 | .8) | (1 | .6) | (4 | .5) | (6 | .7) | ||
Total earnings as defined | $213 | .2 | $190.2 | $250 | .9 | $245 | .6 | $238 | .3 | $232 | .1 | $221 | .7 | ||
FIXED CHARGES: | |||||||||||||||
Interest expense | $44 | .5 | $35.7 | $49 | .6 | $48 | .3 | $40 | .4 | $33 | .5 | $37 | .9 | ||
Estimated interest component of rent expense | 24 | .5 | 29.7 | 35 | .2 | 33 | .6 | 33 | .5 | 23 | .1 | 9 | .8 | ||
Total fixed charges as defined | $69 | .0 | $65.4 | $84 | .8 | $81 | .9 | $73 | .9 | $56 | .6 | $47 | .7 | ||
Ratio of Earnings to Fixed Charges | 3 | .09 | 2.91 | 2 | .96 | 3 | .00 | 3 | .22 | 4 | .10 | 4 | .65 | ||
Preferred dividend requirements (pre-tax basis) (b) | $3 | .9 | $3.8 | $5 | .0 | $5 | .2 | $5 | .2 | $5 | .2 | $5 | .2 | ||
Fixed charges and preferred dividend requirements | $72 | .9 | $69.2 | $89 | .8 | $87 | .1 | $79 | .1 | $61 | .8 | $52 | .9 | ||
Ratio of Earnings to Combined Fixed Charges and | |||||||||||||||
Preferred Dividend Requirements | 2 | .92 | 2.75 | 2 | .79 | 2 | .82 | 3 | .01 | 3 | .76 | 4 | .19 | ||
(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.