EX-12 3 ex12_2.htm EXHIBIT 12.2: MGE RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.2

Madison Gas and Electric Company

Ratio of Earnings to Fixed Charges

Twelve Months Ended December 31, 2015

(In thousands)

Earnings |
Net income before minority interest | $71,465
Equity earnings | (7,728)
Income distribution from equity investees | 6,645
Minority interest in pretax income | (3,628)
Amortization of capitalized interest | 527
Federal and state income taxes | 41,406
Fixed charges | 21,323
Total Earnings as Defined | $130,010
Fixed Charges |
Interest expense on long-term debt and other | $19,477
Interest on rentals* | 709
Amortization of debt issuance costs | 906
AFUDC - borrowed funds | 231
Total Fixed Charges | $21,323
Ratio of Earnings to Fixed Charges | 6.10X

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

gives a reasonable approximation for actual interest on rentals.