American Electric Power (AEP) 10-K 2014 FY Annual report

EXHIBIT 12

AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES

Computation of Consolidated Ratios of Earnings to Fixed Charges

(in millions except ratio data)

	Years Ended December 31,
	2010			2011			2012		2013		2014
EARNINGS
Income Before Income Tax Expense and Equity Earnings	$	1,849		$	2,367		$	1,822	$	2,110	$	2,490
Income Distributed from Equity Method Investment	—			—			—		—		23
Fixed Charges (as below)	1,254			1,209			1,257		1,136		1,104
Preferred Security Dividend Requirements of    Consolidated Subsidiaries	(4		)	(8		)	—		—		—
Total Earnings	$	3,099		$	3,568		$	3,079	$	3,246	$	3,617
FIXED CHARGES
Interest Expense	$	999		$	933		$	988	$	906	$	885
Credit for Allowance for Borrowed Funds Used    During Construction	53			63			69		40		44
Estimated Interest Element in Lease Rentals	198			205			200		190		175
Preferred Security Dividend Requirements of    Consolidated Subsidiaries	4			8			—		—		—
Total Fixed Charges	$	1,254		$	1,209		$	1,257	$	1,136	$	1,104
Ratio of Earnings to Fixed Charges	2.47			2.95			2.44		2.85		3.27