Aep Texas Central (ATXCH) 10-Q 2004 Q2 Quarterly report

EXHIBIT 12

AEP TEXAS CENTRAL COMPANY AND SUBSIDIARY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)

	Year Ended December 31,										Twelve Months Ended
	1999		2000		2001		2002		2003		6/30/04
Earnings:
Net Income Before Extraordinary Item and
Cumulative Effect of Accounting Change	$187,718		$189,567		$182,278		$275,941		$217,547		$118,585
Plus Federal Income Taxes	83,508		80,797		172,722		30,102		90,868		59,121
Plus State Income Taxes	--		3,532		14,849		3,616		118		(3,781	)
Plus Provision for Deferred Income Taxes	19,938		16,263		(72,568	)	113,655		19,393		(5,658	)
Plus Deferred Investment Tax Credits	(5,207	)	(5,207	)	(5,207	)	(5,207	)	(5,207	)	(5,207	)
Plus Fixed Charges	118,911		132,785		125,194		132,236		136,143		134,739
Total Earnings	$404,868		$417,737		$417,268		$550,343		$458,862		$297,799
Fixed Charges:
Interest on Long-term Debt	$87,413		$96,212		$86,980		$99,839		$122,866		$127,103
Interest on Short-term Debt	19,498		22,830		25,023		19,442		5,877		5,686
Distributions on Trust Preferred Securities	12,000		11,940		11,208		10,560		5,264		(186	)
Estimated Interest Element in Lease Rentals	--		1,803		1,983		2,395		2,136		2,136
Fixed Charges	$118,911		$132,785		$125,194		$132,236		$136,143		$134,739
Ratio of Earnings to Fixed Charges	3.40		3.14		3.33		4.16		3.37		2.21

* Certain amounts have been reclassified between interest on short-term and long-term debt compared to periods prior to January 1, 2002. This reclassification had no effect on the ratio.

* Certain amounts have been reclassified between Distributions on Trust Preferred Securities and Interest on Long-term Debt due to the implementation of FIN 46R "Consolidation of Variable Interest Entities" effective March 31, 2004, on a prospective basis. This reclassification had no effect on this ratio.