EX-12.2 5 exh122.htm WPSC RATIO OF EARNINGS TO FIXED CHARGES WPSC Ratio of Earnings to Fixed Charges
Exhibit 12.2
Wisconsin Public Service Corporation
  
Ratio of Earnings to Fixed Charges and
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
  
                       
                       
(Millions)
  
2006
  
2005
  
2004
 
2003
  
2002
  
EARNINGS
                      
Earnings on common stock
  
$
99.0
  
$
81.4
  
$
104.8
  
$
78.9
  
$
83.1
  
Federal and state income taxes
    
58.3
   
44.1
   
51.3
   
45.7
   
46.8
  
                                 
Net pretax income
    
157.3
   
125.5
   
156.1
   
124.6
   
129.9
 
Loss (Income) from less than 50% equity investees
    
(9.4
)
  
(7.5
)
  
(8.4
)
  
(6.0
)
  
(6.6
)
Distributed earnings of less than 50% equity investees
    
6.2
   
5.5
   
5.9
   
4.3
   
5.4
 
                                 
Fixed charges
    
47.2
   
42.7
   
40.4
   
38.8
   
41.2
 
                                 
Subtract preference dividend requirement
    
4.9
   
4.7
   
4.6
   
4.8
   
4.8
 
                                 
Total earnings as defined
  
$
196.4
  
$
161.5
  
$
189.4
  
$
156.9
  
$
165.1
  
                                 
FIXED CHARGES
                                
Interest on long-term debt, including related amortization
  
$
29.4
  
$
29.8
  
$
29.9
  
$
27.8
  
$
27.2
  
Other interest
    
11.2
   
6.5
   
4.5
   
4.9
   
7.9
  
Interest factor applicable to rentals
    
1.7
   
1.7
   
1.4
   
1.3
   
1.3
  
                                 
Fixed charges before preferred dividend requirement
  
$
42.3
  
$
38.0
  
$
35.8
  
$
34.0
  
$
36.4
  
                                 
Ratio of earnings to fixed charges
    
4.6
   
4.3
   
5.3
   
4.6
   
4.5
 
                                 
Preferred dividends (grossed up) (see below)
  
$
4.9
  
$
4.7
  
$
4.6
  
$
4.8
  
$
4.8
  
                                 
Total fixed charges including preferred dividend
  
$
47.2
  
$
42.7
  
$
40.4
  
$
38.8
  
$
41.2
  
                                 
Ratio of earnings to fixed charges and preferred dividends
    
4.2
   
3.8
   
4.7
   
4.0
   
4.0
 
                                 
                                 
PREFERRED DIVIDEND CALCULATION:
                                
                                 
Preferred dividends
  
$
3.1
  
$
3.1
  
$
3.1
  
$
3.1
  
$
3.1
  
                                 
Tax rate
    
36.6
%
  
34.5
%
  
32.4
%
  
35.6
%
  
35.0
%
                                 
Preferred dividends (grossed up)
  
$
4.9
  
$
4.7
  
$
4.6
  
$
4.8
  
$
4.8