EXHIBIT 12.2
Madison Gas and Electric Company
Ratio of Earnings to Fixed Charges
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| Nine Months Ended |
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| September 30, |
| Twelve Months Ended December 31, | ||||||||||
(In thousands) |
| 2018 |
| 2017 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
Earnings |
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Net income before minority interest | $ | 62,775 | $ | 57,686 | $ | 93,072 | $ | 74,592 | $ | 71,465 | $ | 81,938 | $ | 76,445 |
Equity earnings |
| - |
| - |
| - |
| (6,366) |
| (7,728) |
| (9,150) |
| (9,434) |
Income distribution from equity investees |
| - |
| - |
| - |
| 5,032 |
| 6,645 |
| 7,740 |
| 7,404 |
Minority interest in pre-tax investees |
| - |
| - |
| - |
| (2,355) |
| (3,628) |
| (4,149) |
| (4,022) |
Amortization of capitalized interest |
| 396 |
| 396 |
| 527 |
| 527 |
| 527 |
| 527 |
| 527 |
Federal and state income taxes |
| 19,919 |
| 32,834 |
| 18,990 |
| 41,791 |
| 41,406 |
| 49,145 |
| 45,822 |
Fixed charges |
| 16,853 |
| 15,701 |
| 21,026 |
| 21,200 |
| 21,323 |
| 21,812 |
| 20,955 |
Total Earnings as Defined | $ | 99,943 | $ | 106,617 | $ | 133,615 | $ | 134,421 | $ | 130,010 | $ | 147,863 | $ | 137,697 |
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Fixed Charges |
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Interest expense on long-term debt and other | $ | 15,043 | $ | 14,252 | $ | 19,149 | $ | 19,235 | $ | 19,477 | $ | 19,149 | $ | 18,355 |
Interest on rentals* |
| 443 |
| 500 |
| 590 |
| 667 |
| 709 |
| 823 |
| 889 |
Amortization of debt issuance costs |
| 684 |
| 654 |
| 875 |
| 903 |
| 906 |
| 698 |
| 676 |
AFUDC - borrowed funds |
| 683 |
| 295 |
| 412 |
| 395 |
| 231 |
| 1,142 |
| 1,035 |
Total Fixed Charges | $ | 16,853 | $ | 15,701 | $ | 21,026 | $ | 21,200 | $ | 21,323 | $ | 21,812 | $ | 20,955 |
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Ratio of Earnings to Fixed Charges |
| 5.93X |
| 6.79X |
| 6.35X |
| 6.34X |
| 6.10X |
| 6.78X |
| 6.57X |
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*Management believes that using one-third of the total rental expense gives a reasonable approximation for actual | ||||||||||||||
interest on rentals. |
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