Exhibit (12) WISCONSIN ELECTRIC POWER COMPANY Statement of Computation of Ratios of Earnings to Fixed Charges (Unaudited) (Thousands of Dollars) Year Ended December 31 --------------------------------------------------- 12 Months Ended 1993 1994 1995 1996 1997 3/31/98 ---- ---- ---- ---- ---- -- - ----- Pretax Income Net Income $192,080 $181,754 $240,668 $211,315 $ 70,615 $ 77,224 Income Taxes 101,127 101,854 141,934 127,828 35,012 36,693 -------- ----- - --- -------- -------- -------- -------- Pretax Income 293,207 283,608 382,602 339,143 105,627 113,917 Fixed Charges Interest on Long-Term Debt (A) 103,262 102,059 99,727 100,133 106,573 103,127 Other Interest Expense 3,945 7,610 11,960 7,821 8,730 11,992 Interest Factor of Rents Nuclear Fuel 1,697 1,896 2,401 2,332 868 1,125 Long-Term Power Purchase Contract (B) - - - - 5,614 10,689 -------- -------- -------- -------- -------- --- - ----- Total Fixed Charges 108,904 111,565 114,088 110,286 121,785 126,933 -------- -------- -------- -------- -------- --- - ----- Earnings Before Income Taxes & Fixed Charges $402,111 $395,173 $496,690 $449,429 $227,412 $240,850 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 3.7x 3.5x 4.4x 4.1x 1.9x 1.9x (A) Includes amortization of debt premium, discount & expense. (B) Wisconsin Electric has entered into a long-term power purchase contract that is being accounted for as a capital lease.