Integrys Holding (TEG) 10-K 2010 FY Annual report

													Exhibit 12
INTEGRYS ENERGY GROUP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)	2010			2009			2008			2007			2006
EARNINGS
Net income (loss) from continuing operations	$	223.5		$	(70.3	)	$	114.8		$	181.0		$	147.8
Provision for income taxes		148.2			83.7			61.1			86.0			45.0
Income (loss) from continuing operations before income taxes		371.7			13.4			175.9			267.0			192.8
Less:
Undistributed earnings of less than 50% owned affiliates		(14.8	)		(16.2	)		(16.4	)		3.8			13.0
Preferred stock dividends of subsidiary (a)		(5.3	)		0.7			(4.8	)		(5.2	)		(5.3	)
Interest capitalized (b)		-			(0.2	)		-			-			-
Adjusted income (loss) from continuing operations before income taxes		351.6			(2.3	)		154.7			265.6			200.5
Total fixed charges as defined		158.8			172.3			170.5			174.6			107.0
Total earnings as defined	$	510.4		$	170.0		$	325.2		$	440.2		$	307.5
FIXED CHARGES
Interest expense	$	147.9		$	164.8		$	158.1		$	164.5		$	99.2
Interest capitalized (c)		0.6			2.6			2.0			0.3			0.2
Interest factor applicable to rentals		5.0			5.6			5.6			4.6			2.3
Preferred stock dividends of subsidiary (a)		5.3			(0.7	)		4.8			5.2			5.3
Total fixed charges as defined	$	158.8		$	172.3		$	170.5		$	174.6		$	107.0
RATIO OF EARNINGS TO FIXED CHARGES		3.2		(d)				1.9			2.5			2.9
(a) Preferred stock dividends of subsidiary are computed by dividing the preferred stock dividends of subsidiary by 100% minus the income tax rate.
(b) Includes interest capitalized for the unregulated segment.
(c) Includes allowance for funds used during construction.
(d) For the 12 months ended December 31, 2009, earnings were inadequate to cover fixed charges by $2.3 million, driven by a pre-tax non-cash
goodwill impairment loss of  $291.1 million.