Exhibit 12
ALLETE
Computation of Ratios of Earnings to Fixed Charges
For the Year Ended December 31 | YTD 9/30/2007 | 2006 | 2005 | 2004 | 2003 | 2002 |
Millions Except Ratios | ||||||
Income from Continuing Operations | ||||||
Before Minority Interest and Income Taxes | $102.4 | $128.2 | $19.8 | $57.0 | $49.5 | $37.9 |
Less: Minority Interest (a) | – | – | – | 2.1 | 2.6 | 1.0 |
Undistributed Income from Less than 50% | ||||||
Owned Equity Investment | 2.6 | 2.3 | – | – | 2.9 | 4.7 |
99.8 | 125.9 | 19.8 | 54.9 | 44.0 | 32.2 | |
Fixed Charges | ||||||
Interest on Long-Term Debt | 17.2 | 22.2 | 23.1 | 60.3 | 70.0 | 73.9 |
Capitalized Interest | 0.2 | 0.6 | 0.3 | 0.7 | 1.2 | 0.8 |
Other Interest Charges (b) | 2.6 | 5.3 | 3.5 | 8.7 | 4.3 | 5.3 |
Interest Component of All Rentals (c) | 1.4 | 2.0 | 2.8 | 3.5 | 8.0 | 9.9 |
Total Fixed Charges | 21.4 | 30.1 | 29.7 | 73.2 | 83.5 | 89.9 |
Earnings Before Income Taxes and Fixed Charges | ||||||
(Excluding Capitalized Interest) | $121.0 | $155.4 | $49.2 | $127.4 | $126.3 | $121.3 |
Ratio of Earnings to Fixed Charges | 5.65 | 5.16 | 1.66 | 1.74 | 1.51 | 1.35 |
(a) | Pre-tax income of subsidiaries that have not incurred fixed charges. |
(b) | Includes interest expense relating to the adoption of FIN 48 – “Accounting for Uncertainty in Income Taxes” |
(c) | Represents interest portion of rents estimated at 33 1/3%. |