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 September 30, | Years Ended Dec. 31, | |||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||||||
Net income | $ | 120.8 | $ | 117.2 | $ | 152.3 | $ | 89.5 | $ | 118.4 | $ | 113.5 | $ | 105.3 | ||||||||||||||
Income taxes (a) | 59.6 | 71.0 | 98.3 | 45.8 | 68.4 | 59.3 | 62.2 | |||||||||||||||||||||
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Income before income taxes | 180.4 | 188.2 | 250.6 | 135.3 | 186.8 | 172.8 | 167.5 | |||||||||||||||||||||
Fixed charges as defined | 80.7 | 79.0 | 101.6 | 99.9 | 90.7 | 84.8 | 81.9 | |||||||||||||||||||||
Adjustment for undistributed equity earnings | (4.5 | ) | (3.9 | ) | (5.6 | ) | (7.1 | ) | (6.1 | ) | (6.7 | ) | (3.8 | ) | ||||||||||||||
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Total earnings as defined | $ | 256.6 | $ | 263.3 | $ | 346.6 | $ | 228.1 | $ | 271.4 | $ | 250.9 | $ | 245.6 | ||||||||||||||
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FIXED CHARGES: | ||||||||||||||||||||||||||||
Interest expense | $ | 60.0 | $ | 58.5 | $ | 78.6 | $ | 74.8 | $ | 62.2 | $ | 49.6 | $ | 48.3 | ||||||||||||||
Estimated interest component of rent expense | 20.7 | 20.5 | 23.0 | 25.1 | 28.5 | 35.2 | 33.6 | |||||||||||||||||||||
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Total fixed charges as defined | $ | 80.7 | $ | 79.0 | $ | 101.6 | $ | 99.9 | $ | 90.7 | $ | 84.8 | $ | 81.9 | ||||||||||||||
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Ratio of Earnings to Fixed Charges | 3.18 | 3.33 | 3.41 | 2.28 | 2.99 | 2.96 | 3.00 | |||||||||||||||||||||
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Preferred dividend requirements (pre-tax basis) (b) | $ | 3.7 | $ | 4.0 | $ | 5.4 | $ | 5.0 | $ | 5.2 | $ | 5.0 | $ | 5.2 | ||||||||||||||
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Fixed charges and preferred dividend requirements | $ | 84.4 | $ | 83.0 | $ | 107.0 | $ | 104.9 | $ | 95.9 | $ | 89.8 | $ | 87.1 | ||||||||||||||
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Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements | 3.04 | 3.17 | 3.24 | 2.17 | 2.83 | 2.79 | 2.82 | |||||||||||||||||||||
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(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. |