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

Six Months Ended June 30, 2016

(In thousands)

Earnings |
Net income before minority interest | $33,287
Equity earnings | (4,000)
Income distribution from equity investees | 2,728
Minority interest in pretax income | (1,931)
Amortization of capitalized interest | 264
Federal and state income taxes | 19,263
Fixed charges | 10,611
Total Earnings as Defined | $60,222
Fixed Charges |
Interest expense on long-term debt and other | $9,632
Interest on rentals* | 355
Amortization of debt issuance costs | 453
AFUDC - borrowed funds | 171
Total Fixed Charges | $10,611
Ratio of Earnings to Fixed Charges | 5.68X

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

gives a reasonable approximation for actual interest on rentals.