Allegheny Energy (AYE) 10-K 2003 FY Annual report

EXHIBIT 12

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

For Years Ended December 31

(Dollar Amounts in Thousands)

	Allegheny Energy, Inc.
	2003			2002			2001			2000			1999
Earnings:
(Loss) income from continuing operations	$	(336,351	)*	$	(510,648	)*	$	456,297	*	$	318,692	**	$	292,572	**
Fixed charges (see below)		490,142			328,824			296,573			239,354			201,614
Income taxes		(216,990	)*		(334,471	)*		248,219	*		187,424	**		166,915	**
Amortization of capitalized interest		1,592			1,719			243			116			37
Less: capitalized interest		(15,394	)		(12,628	)		(9,417	)		(5,149	)		(2,219	)
Less: preference security dividend requirements of consolidated subsidiaries		(5,037	)		(5,037	)		(5,037	)		(5,040	)		(7,183	)
Less: loss (income) from unconsolidated equity investees		1,233			(33,767	)		(1,035	)		(2,263	)		1,028
Total Earnings (as defined)	$	(80,805	)	$	(566,008	)	$	985,843		$	733,134		$	652,764
Fixed Charges:
Interest expensed and capitalized	$	477,998		$	312,599		$	283,282		$	229,324		$	186,810
Preference security dividend requirements of consolidated subsidiaries		5,037			5,037			5,037			5,040			7,183
Estimated interest component of rental expense		7,107			11,188			8,254			4,990			7,621
Total Fixed Charges (as defined)	$	490,142		$	328,824		$	296,573		$	239,354		$	201,614
Ratio of Earnings to Fixed Charges		(A	)		(A	)		3.32			3.06			3.24

* Excludes dividends on preferred stock of subsidiaries, minority interest and the cumulative effect of accounting change(s).

** Excludes the effect of the extraordinary charge.

(A) For the year ended December 31, 2003 and 2002, there is a deficiency of earnings to cover the fixed charges of $570,947 and $894,832, respectively.