EX-12.1 2 exh121.htm RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS Ratio of Earnings to Fixed Charges and Ratio of Earnings to Fixed Charges and Preferred Dividends
Exhibit 12.1
  
Wisconsin Public Service Corporation
  
Ratio of Earnings to Fixed Charges and
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
  
                           
   
2007
                      
(Millions)
  
3 months
  
2006
  
2005
  
2004
 
2003
  
2002
  
EARNINGS
                          
Earnings on common stock
  
$
32.2
  
$
99.0
  
$
81.4
  
$
104.8
  
$
78.9
  
$
83.1
  
Federal and state income taxes
    
20.2
   
58.3
   
44.1
   
51.3
   
45.7
   
46.8
  
                                       
Net pretax income
    
52.4
   
157.3
   
125.5
   
156.1
   
124.6
   
129.9
 
Loss (Income) from less than 50% equity investees
    
(2.2
)
  
(9.4
)
  
(7.5
)
  
(8.4
)
  
(6.0
)
  
(6.6
)
Distributed earnings of less than 50% equity investees
    
1.4
   
6.2
   
5.5
   
5.9
   
4.3
   
5.4
 
                                       
Fixed charges
    
12.6
   
47.2
   
42.7
   
40.4
   
38.8
   
41.2
 
                                       
Subtract preference dividend requirement
    
1.3
   
4.9
   
4.7
   
4.6
   
4.8
   
4.8
 
                                       
Total earnings as defined
  
$
62.9
  
$
196.4
  
$
161.5
  
$
189.4
  
$
156.9
  
$
165.1
  
                                       
FIXED CHARGES
                                      
Interest on long-term debt, including related amortization
  
$
8.9
  
$
29.4
  
$
29.8
  
$
29.9
  
$
27.8
  
$
27.2
  
Other interest
    
2.0
   
11.2
   
6.5
   
4.5
   
4.9
   
7.9
  
Interest factor applicable to rentals
    
0.4
   
1.7
   
1.7
   
1.4
   
1.3
   
1.3
  
                                       
Fixed charges before preferred dividend requirement
  
$
11.3
  
$
42.3
  
$
38.0
  
$
35.8
  
$
34.0
  
$
36.4
  
                                       
Ratio of earnings to fixed charges
    
5.6
   
4.6
   
4.3
   
5.3
   
4.6
   
4.5
 
                                       
Preferred dividends (grossed up) (see below)
  
$
1.3
  
$
4.9
  
$
4.7
  
$
4.6
  
$
4.8
  
$
4.8
  
                                       
Total fixed charges including preferred dividend
  
$
12.6
  
$
47.2
  
$
42.7
  
$
40.4
  
$
38.8
  
$
41.2
  
                                       
Ratio of earnings to fixed charges and preferred dividends
    
5.0
   
4.2
   
3.8
   
4.7
   
4.0
   
4.0
 
                                       
                                       
PREFERRED DIVIDEND CALCULATION:
                                      
                                       
Preferred dividends
  
$
0.8
  
$
3.1
  
$
3.1
  
$
3.1
  
$
3.1
  
$
3.1
  
                                       
Tax rate
    
38.2
%
  
36.6
%
  
34.5
%
  
32.4
%
  
35.6
%
  
35.0
%
                                       
Preferred dividends (grossed up)
  
$
1.3
  
$
4.9
  
$
4.7
  
$
4.6
  
$
4.8
  
$
4.8