EX-12.3 4 lnt630201610-qex123.htm RATIO OF EARNINGS TO FIXED CHARGES FOR WPL
Exhibit 12.3
WISCONSIN POWER AND LIGHT COMPANY
RATIO OF EARNINGS TO FIXED CHARGES

| Six Months Ended |  |  |  |  |  |
| June 30, |  | Years Ended December 31,
| 2016 |  | 2015 |  | 2015 | 2014 | 2013 | 2012 | 2011
| (dollars in millions)
EARNINGS: |  |  |  |  |  |  |  |  |
Net income |  | $90.7 |  |  |  | $84.8 |  |  |  | $177.6 |  |  | $181.1 |  |  | $179.1 |  |  | $172.7 |  |  | $163.5 |
Income taxes (a) | 43.4 |  |  | 40.4 |  |  | 82.9 |  | 85.3 |  | 85.6 |  | 87.6 |  | 81.9 |
Income before income taxes | 134.1 |  |  | 125.2 |  |  | 260.5 |  | 266.4 |  | 264.7 |  | 260.3 |  | 245.4 |
Fixed charges as defined | 46.4 |  |  | 47.0 |  |  | 93.7 |  | 87.7 |  | 86.4 |  | 103.9 |  | 103.3 |
Adjustment for undistributed equity earnings | (7.1 | ) |  | (5.8 | ) |  | (4.5 | ) | (6.4 | ) | (8.3 | ) | (7.9 | ) | (6.4 | )
Total earnings as defined |  | $173.4 |  |  |  | $166.4 |  |  |  | $349.7 |  |  | $347.7 |  |  | $342.8 |  |  | $356.3 |  |  | $342.3 |
FIXED CHARGES: |  |  |  |  |  |  |  |  |
Interest expense |  | $45.8 |  |  |  | $46.4 |  |  |  | $92.4 |  |  | $86.4 |  |  | $85.0 |  |  | $80.2 |  |  | $79.9 |
Estimated interest component of rent expense | 0.6 |  |  | 0.6 |  |  | 1.3 |  | 1.3 |  | 1.4 |  | 23.7 |  | 23.4 |
Total fixed charges as defined |  | $46.4 |  |  |  | $47.0 |  |  |  | $93.7 |  |  | $87.7 |  |  | $86.4 |  |  | $103.9 |  |  | $103.3 |
Ratio of Earnings to Fixed Charges | 3.74 |  |  | 3.54 |  |  | 3.73 |  | 3.96 |  | 3.97 |  | 3.43 |  | 3.31 |

(a) Includes net interest related to unrecognized tax benefits.
In the fourth quarter of 2015, WPL retrospectively applied a change in method of recording income taxes. Refer to Notes 1(c) and 1(q) of the Combined Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year 2015 for further details. Financial statement impacts in 2013, 2012 and 2011 were not material.