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 | ||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 3/31/05 | ||||||||||||||
FIXED CHARGES | |||||||||||||||||||
Interest on Long-term Debt | $ | 96,212 | $ | 86,980 | $ | 99,839 | $ | 122,866 | $ | 116,667 | $ | 109,921 | |||||||
Interest on Short-term Debt | 22,830 | 25,023 | 19,442 | 5,877 | 7,652 | 8,413 | |||||||||||||
Distributions on Trust Preferred Securities | 11,940 | 11,208 | 10,560 | 5,264 | - | - | |||||||||||||
Estimated Interest Element in Lease Rentals | 1,803 | 1,983 | 2,395 | 2,136 | 1,382 | 1,382 | |||||||||||||
Fixed Charges | $ | 132,785 | $ | 125,194 | $ | 132,236 | $ | 136,143 | $ | 125,701 | $ | 119,716 | |||||||
EARNINGS | |||||||||||||||||||
Net Income Before Extraordinary Item and Cumulative Effect of Accounting Change | $ | 189,567 | $ | 182,278 | $ | 275,941 | $ | 217,547 | $ | 294,656 | $ | 266,389 | |||||||
Plus Federal Income Taxes | 80,797 | 172,722 | 30,102 | 90,868 | 113,463 | 102,745 | |||||||||||||
Plus State Income Taxes | 3,532 | 14,849 | 3,616 | 118 | 9,840 | 8,956 | |||||||||||||
Plus Provision for Deferred Income Taxes | 16,263 | (72,568 | ) | 113,655 | 19,393 | 16,492 | 14,847 | ||||||||||||
Plus Deferred Investment Tax Credits | (5,207 | ) | (5,207 | ) | (5,207 | ) | (5,207 | ) | (4,736 | ) | (4,500 | ) | |||||||
Plus Fixed Charges (as above) | 132,785 | 125,194 | 132,236 | 136,143 | 125,701 | 119,716 | |||||||||||||
Total Earnings | $ | 417,737 | $ | 417,268 | $ | 550,343 | $ | 458,862 | $ | 555,416 | $ | 508,153 | |||||||
Ratio of Earnings to Fixed Charges | 3.14 | 3.33 | 4.16 | 3.37 | 4.41 | 4.24 |
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 affect 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.