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, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||||||
Net income | $ | 44.4 | $ | 37.0 | $ | 152.3 | $ | 89.5 | $ | 118.4 | $ | 113.5 | $ | 105.3 | ||||||||||||||
Income taxes (a) | 21.4 | 25.0 | 98.3 | 45.8 | 68.4 | 59.3 | 62.2 | |||||||||||||||||||||
Income before income taxes | 65.8 | 62.0 | 250.6 | 135.3 | 186.8 | 172.8 | 167.5 | |||||||||||||||||||||
Fixed charges as defined | 22.6 | 22.2 | 101.6 | 99.9 | 90.7 | 84.8 | 81.9 | |||||||||||||||||||||
Adjustment for undistributed equity earnings | (1.1 | ) | (1.0 | ) | (5.6 | ) | (7.1 | ) | (6.1 | ) | (6.7 | ) | (3.8 | ) | ||||||||||||||
Total earnings as defined | $ | 87.3 | $ | 83.2 | $ | 346.6 | $ | 228.1 | $ | 271.4 | $ | 250.9 | $ | 245.6 | ||||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||||||
Interest expense | $ | 20.1 | $ | 19.8 | $ | 78.6 | $ | 74.8 | $ | 62.2 | $ | 49.6 | $ | 48.3 | ||||||||||||||
Estimated interest component of rent expense | 2.5 | 2.4 | 23.0 | 25.1 | 28.5 | 35.2 | 33.6 | |||||||||||||||||||||
Total fixed charges as defined | $ | 22.6 | $ | 22.2 | $ | 101.6 | $ | 99.9 | $ | 90.7 | $ | 84.8 | $ | 81.9 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 3.86 | 3.75 | 3.41 | 2.28 | 2.99 | 2.96 | 3.00 | |||||||||||||||||||||
Preferred dividend requirements (pre-tax basis) (b) | $ | 1.2 | $ | 1.3 | $ | 5.4 | $ | 5.0 | $ | 5.2 | $ | 5.0 | $ | 5.2 | ||||||||||||||
Fixed charges and preferred dividend requirements | $ | 23.8 | $ | 23.5 | $ | 107.0 | $ | 104.9 | $ | 95.9 | $ | 89.8 | $ | 87.1 | ||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 3.67 | 3.54 | 3.24 | 2.17 | 2.83 | 2.79 | 2.82 | |||||||||||||||||||||
| (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. |