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 Dec. 31, | ||||||||||||||||||||||
2012 | 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
EARNINGS: | |||||||||||||||||||||||
Net income | $68.0 | $69.4 | $163.5 | $152.3 | $89.5 | $118.4 | $113.5 | ||||||||||||||||
Income taxes (a) | 44.3 | 32.7 | 81.9 | 98.3 | 45.8 | 68.4 | 59.3 | ||||||||||||||||
Income before income taxes | 112.3 | 102.1 | 245.4 | 250.6 | 135.3 | 186.8 | 172.8 | ||||||||||||||||
Fixed charges as defined | 50.3 | 50.4 | 103.3 | 101.6 | 99.9 | 90.7 | 84.8 | ||||||||||||||||
Adjustment for undistributed equity earnings | (3.9 | ) | (3.2 | ) | (6.4 | ) | (5.6 | ) | (7.1 | ) | (6.1 | ) | (6.7 | ) | |||||||||
Total earnings as defined | $158.7 | $149.3 | $342.3 | $346.6 | $228.1 | $271.4 | $250.9 | ||||||||||||||||
FIXED CHARGES: | |||||||||||||||||||||||
Interest expense | $39.9 | $40.1 | $79.9 | $78.6 | $74.8 | $62.2 | $49.6 | ||||||||||||||||
Estimated interest component of rent expense | 10.4 | 10.3 | 23.4 | 23.0 | 25.1 | 28.5 | 35.2 | ||||||||||||||||
Total fixed charges as defined | $50.3 | $50.4 | $103.3 | $101.6 | $99.9 | $90.7 | $84.8 | ||||||||||||||||
Ratio of Earnings to Fixed Charges | 3.16 | 2.96 | 3.31 | 3.41 | 2.28 | 2.99 | 2.96 | ||||||||||||||||
Preferred dividend requirements (pre-tax basis) (b) | $2.8 | $2.5 | $5.0 | $5.4 | $5.0 | $5.2 | $5.0 | ||||||||||||||||
Fixed charges and preferred dividend requirements | $53.1 | $52.9 | $108.3 | $107.0 | $104.9 | $95.9 | $89.8 | ||||||||||||||||
Ratio of Earnings to Combined Fixed Charges and | |||||||||||||||||||||||
Preferred Dividend Requirements | 2.99 | 2.82 | 3.16 | 3.24 | 2.17 | 2.83 | 2.79 |
(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.