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 Dec. 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||
(dollars in millions) | ||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||
Net income | $37.0 | $31.3 | $89.5 | $118.4 | $113.5 | $105.3 | $105.1 | |||||||||||||
Income taxes (a) | 25.0 | 13.7 | 45.8 | 68.4 | 59.3 | 62.2 | 60.9 | |||||||||||||
Income before income taxes | 62.0 | 45.0 | 135.3 | 186.8 | 172.8 | 167.5 | 166.0 | |||||||||||||
Fixed charges as defined | 22.2 | 21.3 | 99.9 | 90.7 | 84.8 | 81.9 | 73.9 | |||||||||||||
Adjustment for undistributed equity earnings | (1.0 | ) | (2.2 | ) | (7.1 | ) | (6.1 | ) | (6.7 | ) | (3.8 | ) | (1.6) | |||||||
Total earnings as defined | $83.2 | $64.1 | $228.1 | $271.4 | $250.9 | $245.6 | $238.3 | |||||||||||||
FIXED CHARGES: | ||||||||||||||||||||
Interest expense | $19.8 | $17.5 | $74.8 | $62.2 | $49.6 | $48.3 | $40.4 | |||||||||||||
Estimated interest component of rent expense | 2.4 | 3.8 | 25.1 | 28.5 | 35.2 | 33.6 | 33.5 | |||||||||||||
Total fixed charges as defined | $22.2 | $21.3 | $99.9 | $90.7 | $84.8 | $81.9 | $73.9 | |||||||||||||
Ratio of Earnings to Fixed Charges | 3.75 | 3.01 | 2.28 | 2.99 | 2.96 | 3.00 | 3.22 | |||||||||||||
Preferred dividend requirements (pre-tax basis) (b) | $1.3 | $1.2 | $5.0 | $5.2 | $5.0 | $5.2 | $5.2 | |||||||||||||
Fixed charges and preferred dividend requirements | $23.5 | $22.5 | $104.9 | $95.9 | $89.8 | $87.1 | $79.1 | |||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 3.54 | 2.85 | 2.17 | 2.83 | 2.79 | 2.82 | 3.01 | |||||||||||||
(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.