EX-12 5 ratio.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. ratio.htm

Exhibit 12

ALLETE
Computation of Ratios of Earnings to Fixed Charges

For the Year Ended December 31
YTD
9/30/2007
2006
2005
2004
2003
2002
Millions Except Ratios
            
             
Income from Continuing Operations
            
Before Minority Interest and Income Taxes
$102.4
$128.2
$19.8
$57.0
$49.5
$37.9
Less:  Minority Interest (a)
–
–
–
2.1
2.6
1.0
Undistributed Income from Less than 50%
            
Owned Equity Investment
2.6
2.3
–
–
2.9
4.7
 
99.8
125.9
19.8
54.9
44.0
32.2
Fixed Charges
            
Interest on Long-Term Debt
17.2
22.2
23.1
60.3
70.0
73.9
Capitalized Interest
0.2
0.6
0.3
0.7
1.2
0.8
Other Interest Charges (b)
2.6
5.3
3.5
8.7
4.3
5.3
Interest Component of All Rentals (c)
1.4
2.0
2.8
3.5
8.0
9.9
Total Fixed Charges
21.4
30.1
29.7
73.2
83.5
89.9
Earnings Before Income Taxes and Fixed Charges
            
(Excluding Capitalized Interest)
$121.0
$155.4
$49.2
$127.4
$126.3
$121.3
Ratio of Earnings to Fixed Charges
5.65
5.16
1.66
1.74
1.51
1.35
(a)  
Pre-tax income of subsidiaries that have not incurred fixed charges.
(b)  
 Includes interest expense relating to the adoption of FIN 48 – “Accounting for Uncertainty in Income Taxes”
(c)  
Represents interest portion of rents estimated at 33 1/3%.