EXHIBIT 12
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
Year Ended December 31, | Twelve Months Ended | Nine Months Ended | ||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | 9/30/2006 | 9/30/2006 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Tax Expense, Minority Interest Expense and Equity Earnings | $ | 1,481 | $ | 814 | $ | 872 | $ | 1,684 | $ | 1,453 | $ | 1,262 | $ | 1,210 | ||||||||
Fixed Charges (as below) | 1,103 | 1,048 | 1,050 | 989 | 916 | 944 | 714 | |||||||||||||||
Preferred Security Dividend Requirements of Consolidated Subsidiaries | (15 | ) | (18 | ) | (15 | ) | (9 | ) | (10 | ) | (4 | ) | (3 | ) | ||||||||
Total Earnings | $ | 2,569 | $ | 1,844 | $ | 1,907 | $ | 2,664 | $ | 2,359 | $ | 2,202 | $ | 1,921 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 833 | $ | 775 | $ | 814 | $ | 781 | $ | 697 | $ | 691 | $ | 518 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 42 | 32 | 24 | 22 | 36 | 76 | 64 | |||||||||||||||
Estimated Interest Element in Lease Rentals | 213 | 223 | 197 | 177 | 173 | 173 | 129 | |||||||||||||||
Preferred Security Dividend Requirements of Consolidated Subsidiaries | 15 | 18 | 15 | 9 | 10 | 4 | 3 | |||||||||||||||
Total Fixed Charges | $ | 1,103 | $ | 1,048 | $ | 1,050 | $ | 989 | $ | 916 | $ | 944 | $ | 714 | ||||||||
Ratio of Earnings to Fixed Charges | 2.32 | 1.75 | 1.81 | 2.69 | 2.57 | 2.33 | 2.69 |