EXHIBIT 12 ALLETE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- MILLIONS EXCEPT RATIOS Income from Continuing Operations Before Income Taxes $ 55.9 $ 48.0 $ 37.0 $ 83.2 $129.0 Add (Deduct) Undistributed Income from Less than 50% Owned Equity Investments - (2.9) (4.7) (1.5) - Minority Interest - - - 0.1 - - ------------------------------------------------------------------------------------------------------------------------- 55.9 45.1 32.3 81.8 129.0 - ------------------------------------------------------------------------------------------------------------------------- Fixed Charges Interest on Long-Term Debt 60.3 70.0 73.9 80.0 60.5 Capitalized Interest 0.7 1.2 0.8 1.0 0.9 Other Interest Charges 8.7 4.3 5.3 12.9 15.9 Interest Component of All Rentals 3.5 8.0 9.9 10.4 8.5 - ------------------------------------------------------------------------------------------------------------------------- Total Fixed Charges 73.2 83.5 89.9 104.3 85.8 - ------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes and Fixed Charges (Excluding Capitalized Interest) $128.4 $127.4 $121.4 $185.1 $213.9 - ------------------------------------------------------------------------------------------------------------------------- Ratio of Earnings to Fixed Charges 1.75 1.53 1.35 1.77 2.49 - ------------------------------------------------------------------------------------------------------------------------- ALLETE 2004 Form 10-K Page 78