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

Nine Months Ended September 30, 2012

(In thousands)



Earnings


Net income before minority interest

$54,180

Equity earnings

(6,764)

Income distribution from equity investees

5,300

Minority interest in pretax income

(2,634)

Amortization of capitalized interest

395

Federal and state income taxes

32,828

Fixed charges

16,028

Total Earnings as Defined

$99,333

 


Fixed Charges


Interest expense on long-term debt and other

$14,332

Interest on rentals*

809

Amortization of debt issuance costs

489

AFUDC - borrowed funds

398

Total Fixed Charges

$16,028

 

 

Ratio of Earnings to Fixed Charges

6.20X


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

gives a reasonable approximation for actual interest on rentals.