EXHIBIT (12)-1 WISCONSIN ELECTRIC POWER COMPANY STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited) (Thousands of Dollars) Twelve Months Ended ------------------------------------------------------------ ---------- 12/31/94 12/31/95 12/31/96 12/31/97 12/31/98 03/31/99 -------- -------- -------- -------- -------- -------- Pre-Tax Income Net Income $ 181,754 $240,668 $211,315 $70,615 $184,174 $189,839 Income Taxes 101,854 141,934 127,828 35,012 96,699 99,899 --------- -------- -------- -------- -------- -------- Total Pre-Tax Income 283,608 382,602 339,143 105,627 280,873 289,738 Fixed Charges Interest on Long-Term Debt (a) 102,059 99,727 100,133 106,573 100,420 101,490 Other Interest Expense 7,610 11,960 7,821 8,730 11,756 10,971 Interest Factors of Rents Nuclear Fuel 1,896 2,401 2,332 868 3,136 3,389 Long-Term Purchase Power Contract (b) 0 0 0 5,614 20,297 20,322 --------- -------- -------- -------- -------- -------- Total Fixed Charges As Defined 111,565 114,088 110,286 121,785 135,609 136,172 --------- -------- -------- -------- -------- -------- Earnings Before Income Taxes & Fixed Charges Charges $ 395,173 $496,690 $449,429 $227,412 $416,482 $425,910 ========= ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 3.5x 4.4x 4.1x 1.9x 3.1x 3.1x <FN> (a) Includes amortization of debt premium, discount and expense. (b) Wisconsin Electric has entered into a long-term power purchase contract that is being accounted for as a capital lease. </FN>