EXHIBIT 12
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
Twelve | Six | |||||||||||||||||||||
Months | Months | |||||||||||||||||||||
Year Ended December 31, | Ended | Ended | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | 6/30/2009 | 6/30/2009 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Tax Expense and Equity Earnings | $ | 1,692 | $ | 1,463 | $ | 1,483 | $ | 1,663 | $ | 2,015 | $ | 1,755 | $ | 1,011 | ||||||||
Fixed Charges (as below) | 987 | 913 | 999 | 1,146 | 1,240 | 1,268 | 620 | |||||||||||||||
Preferred Security Dividend Requirements of Consolidated Subsidiaries | (9 | ) | (10 | ) | (4 | ) | (4 | ) | (4 | ) | (4 | ) | (2 | ) | ||||||||
Total Earnings | $ | 2,670 | $ | 2,366 | $ | 2,478 | $ | 2,805 | $ | 3,251 | $ | 3,019 | $ | 1,629 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 779 | $ | 694 | $ | 729 | $ | 838 | $ | 957 | $ | 982 | $ | 478 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 22 | 36 | 82 | 79 | 75 | 78 | 38 | |||||||||||||||
Estimated Interest Element in Lease Rentals | 177 | 173 | 184 | 225 | 204 | 204 | 102 | |||||||||||||||
Preferred Security Dividend Requirements of Consolidated Subsidiaries | 9 | 10 | 4 | 4 | 4 | 4 | 2 | |||||||||||||||
Total Fixed Charges | $ | 987 | $ | 913 | $ | 999 | $ | 1,146 | $ | 1,240 | $ | 1,268 | $ | 620 | ||||||||
Ratio of Earnings to Fixed Charges | 2.70 | 2.59 | 2.48 | 2.44 | 2.62 | 2.38 | 2.62 |