EX-12.1 2 wepco06302012ex121.htm WISCONSIN ELECTRIC EXHIBIT 12.1 WEPCO 06.30.2012 EX 12.1


EXHIBIT 12.1

WISCONSIN ELECTRIC POWER COMPANY
STATEMENT OF COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)

 
Six
 
 
 
 
 
 
 
 
 
 
 
 
 
Months
 
 
 
 
 
 
 
 
 
 
 
 
 
Ended
 
Twelve Months Ended
 
6/30/2012
 
6/30/2012
 
12/31/2011
 
12/31/2010
 
12/31/2009
 
12/31/2008
 
12/31/2007
 
(Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax Income
$
298.0

 
$
546.6

 
$
485.2

 
$
470.8

 
$
435.3

 
$
439.4

 
$
468.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subtract:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized Interest
(9.4
)
 
(23.5
)
 
(24.7
)
 
(13.5
)
 
(6.6
)
 
(3.0
)
 
(1.8
)
Earnings Before Adding Fixed Charges (a)
288.6

 
523.1

 
460.5

 
457.3

 
428.7

 
436.4

 
466.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on Long-Term Debt
61.5

 
121.3

 
116.7

 
113.7

 
104.2

 
77.7

 
82.6

Other Interest Expense
1.1

 
2.1

 
2.2

 
1.3

 
2.7

 
11.9

 
12.2

Estimated Interest Component of Rentals
70.9

 
142.5

 
141.3

 
107.1

 
65.6

 
57.6

 
48.5

Total Fixed Charges as Defined (b)
133.5

 
265.9

 
260.2

 
222.1

 
172.5

 
147.2

 
143.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Earnings as Defined
$
422.1

 
$
789.0

 
$
720.7

 
$
679.4

 
$
601.2

 
$
583.6

 
$
610.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
3.2x

 
3.0x

 
2.8x

 
3.1x

 
3.5x

 
4.0x

 
4.3x

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Earnings before adding fixed charges is determined by starting with pre-tax income (less undistributed equity in earnings of unconsolidated affiliates)
and subtracting capitalized interest.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b) Fixed Charges consist of interest charges on our long-term debt and short-term borrowings (including a representative portion of lease expense),
capitalized interest and amortization of debt expense.