EX-12 2 ex12.htm EXHIBIT 12: MGE RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12

Madison Gas and Electric Company

Ratio of Earnings to Fixed Charges

Three Months Ended March 31, 2015

(In thousands)

Earnings |
Net income before minority interest | $18,311
Equity earnings | (1,881)
Income distribution from equity investees | 1,420
Minority interest in pretax income | (876)
Amortization of capitalized interest | 132
Federal and state income taxes | 10,584
Fixed charges | 5,389
Total Earnings as Defined | $33,079
Fixed Charges |
Interest expense on long-term debt and other | $4,913
Interest on rentals* | 206
Amortization of debt issuance costs | 228
AFUDC - borrowed funds | 42
Total Fixed Charges | $5,389
Ratio of Earnings to Fixed Charges | 6.14X

*Management believes that using one-third of the total rental expense

gives a reasonable approximation for actual interest on rentals.