American Water Works (AWK) 8-K Other Events

Exhibit 12.1

AMERICAN WATER WORKS COMPANY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Twelve Months ended December 31,											Six Months Ended June 30,
	2009			2010		2011		2012		2013		2014
Income (loss) from continuing operations before income taxes	$	(106,206	)	$	429,424	$	503,680	$	631,258	$	605,470	$	294,495
Fixed Charges:
Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness		306,979			325,135		321,687		316,889		314,908		150,541
Interest factor in rentals		12,735			13,243		11,878		9,958		8,528		3,843
Interest costs from discontinued operations		1,015			1,319		2,266		277		—		—
Total fixed charges		320,729			339,697		335,831		327,124		323,436		154,384
Income from continuing operations plus fixed charges		214,523			769,121		839,511		958,382		928,906		448,879
Preferred dividend requirements		225			225		225		153		19		—
Ratio of pre-tax income (loss) to net income (loss)		0.48			1.68		1.65		1.69		1.64		1.66
Preferred dividend factor (1)		109			379		372		258		31		—
Total fixed charges		320,729			339,697		335,831		327,124		323,436		154,384
Total fixed charges and preferred dividends		320,838			340,076		336,202		327,382		323,467		154,384
Ratio of earnings to combined fixed charges and preferred dividends (2)		—			2.26		2.50		2.93		2.87		2.91

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 year ended December 31, 2009 earnings were insufficient to cover fixed charges and there was a deficiency of $106.3 million.

AMERICAN WATER CAPITAL CORP.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Twelve Months ended December 31,										Six Months Ended June 30,
	2009		2010		2011		2012		2013		2014
Income (loss) from continuing operations before income taxes	$	—	$	—	$	—	$	—	$	—	$	—
Fixed Charges:
Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness		201,033		206,011		211,982		213,835		225,511		105,403
Total fixed charges		201,033		206,011		211,982		213,835		225,511		105,403
Income from continuing operations plus fixed charges		201,033		206,011		211,982		213,835		225,511		105,403
Total fixed charges		201,033		206,011		211,982		213,835		225,511		105,403
Total fixed charges and preferred dividends		201,033		206,011		211,982		213,835		225,511		105,403
Ratio of earnings to combined fixed charges and preferred dividends		1.00		1.00		1.00		1.00		1.00		1.00

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.