American Water Works (AWK) S-3ASR Automatic shelf registration

Exhibit 12

American Water Works Company, Inc.

Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

	Twelve Months Ended December 31,													Three Months Ended March 31,
	2007			2008			2009			2010		2011		2012
Income (loss) from continuing Operations, before taxes	$	(238,627	)	$	(420,375	)	$	(106,206	)	$	429,424	$	503,680	$	84,645
Fixed Charges:
Interest, dividend on Mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness		286,181			289,749			306,979			325,135		321,687		81,120
Interest factor in rentals		12,155			12,442			12,735			13,243		11,877		2,507
Interest costs from discontinued operations		2,077			1,526			1,015			1,319		2,266		221
Total fixed charges		300,413			303,717			320,729			339,697		335,831		83,848
Income (loss) from continuing operations plus fixed charges		61,786			(116,658	)		214,523			769,121		839,511		168,493
Preferred dividend requirements		225			225			225			225		225		56
Ratio of pre-tax income (loss) to net income (loss)		0.74			0.79			0.48			1.68		1.65		1.72
Preferred dividend factor(1)		166			179			109			379		372		96
Total fixed charges		300,413			303,717			320,729			339,697		335,831		83,848
Total fixed charges and preferred dividends		300,579			303,896			320,838			340,076		336,202		83,944
Ratio of earnings to combined fixed charges and preferred dividends(2)		—			—			—			2.26		2.50		2.01

For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.

(1) Represents the amount of pre-tax earnings required to cover the dividends associated with preferred stock without mandatory redemption requirements.

(2) For the years ended December 31, 2007, 2008 and 2009, earnings were insufficient to cover fixed charges and there were deficiencies of $238.8 million, $420.6 million and $106.3 million, respectively.

American Water Capital Corp.

Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

	Twelve Months Ended December 31,										Three Months Ended March 31,
	2007		2008		2009		2010		2011		2012
Income from continuing operations		—		—		—		—		—		—
Fixed Charges:
Interest, dividend on Mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness		148,128		192,398		198,341		204,124		209,573		52,696
Interest factor in rentals		—		—		—		—		—		—
Interest costs from discontinued operations		—		—		—		—		—		—
Total fixed charges		148,128		192,398		198,341		204,124		209,573		52,696
Income from continuing operations plus fixed charges		148,128		192,398		198,341		204,124		209,573		52,696
Preferred dividend requirements		—		—		—		—		—		—
Ratio of pre-tax income to net income		—		—		—		—		—		—
Preferred dividend factor		—		—		—		—		—		—
Total fixed charges		148,128		192,398		198,341		204,124		209,573		52,696
Total fixed charges and preferred dividends		148,128		192,398		198,341		204,124		209,573		52,696
Ratio of earnings to combined fixed charges and preferred dividends		1		1		1		1		1		1

For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.