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
Three Months Ended | |||||||||||||||||||||||
March 31, | Years Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
EARNINGS: | |||||||||||||||||||||||
Net income | $43.6 | $31.9 | $165.7 | $163.5 | $152.3 | $89.5 | $118.4 | ||||||||||||||||
Income taxes (a) | 20.5 | 25.2 | 94.6 | 81.9 | 98.3 | 45.8 | 68.4 | ||||||||||||||||
Income before income taxes | 64.1 | 57.1 | 260.3 | 245.4 | 250.6 | 135.3 | 186.8 | ||||||||||||||||
Fixed charges as defined | 21.6 | 22.5 | 103.9 | 103.3 | 101.6 | 99.9 | 90.7 | ||||||||||||||||
Adjustment for undistributed equity earnings | (1.9 | ) | (1.5 | ) | (7.9 | ) | (6.4 | ) | (5.6 | ) | (7.1 | ) | (6.1 | ) | |||||||||
Total earnings as defined | $83.8 | $78.1 | $356.3 | $342.3 | $346.6 | $228.1 | $271.4 | ||||||||||||||||
FIXED CHARGES: | |||||||||||||||||||||||
Interest expense | $21.3 | $20.0 | $80.2 | $79.9 | $78.6 | $74.8 | $62.2 | ||||||||||||||||
Estimated interest component of rent expense | 0.3 | 2.5 | 23.7 | 23.4 | 23.0 | 25.1 | 28.5 | ||||||||||||||||
Total fixed charges as defined | $21.6 | $22.5 | $103.9 | $103.3 | $101.6 | $99.9 | $90.7 | ||||||||||||||||
Ratio of Earnings to Fixed Charges | 3.88 | 3.47 | 3.43 | 3.31 | 3.41 | 2.28 | 2.99 | ||||||||||||||||
Preferred dividend requirements (pre-tax basis) (b) | $0.9 | $1.4 | $5.2 | $5.0 | $5.4 | $5.0 | $5.2 | ||||||||||||||||
Fixed charges and preferred dividend requirements | $22.5 | $23.9 | $109.1 | $108.3 | $107.0 | $104.9 | $95.9 | ||||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 3.72 | 3.27 | 3.27 | 3.16 | 3.24 | 2.17 | 2.83 |
(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. Excludes the impact of charges related to Wisconsin Power and Light Company’s preferred stock redemption for the three months ended March 31, 2013.