EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Year Ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
1999 | 2000 | 2001 | 2002 | 2003 | |||||||
Fixed Charges: | |||||||||||
Interest on First Mortgage Bonds | $31,442 | $24,154 | $21,647 | $19,458 | $8,655 | ||||||
Interest on Other Long-term Debt | 38,623 | 55,977 | 56,597 | 71,837 | 71,110 | ||||||
Interest on Short-term Debt | 9,207 | 19,263 | 13,088 | 439 | 1,200 | ||||||
Miscellaneous Interest Charges | 6,754 | 20,356 | 3,929 | 4,961 | 5,242 | ||||||
Estimated Interest Element in Lease Rentals | 73,800 | 74,100 | 74,000 | 72,400 | 69,900 | ||||||
Total Fixed Charges | $159,826 | $193,850 | $169,261 | $169,095 | $156,107 | ||||||
Earnings: | |||||||||||
Net Income (Loss) Before | |||||||||||
Cumulative Effect of Accounting Change | $32,776 | $(132,032 | ) | $75,788 | $73,992 | $89,548 | |||||
Plus Federal Income Taxes | 18,866 | (4,524 | ) | 49,725 | 44,647 | 34,018 | |||||
Plus State Income Taxes | (7,352 | ) | 9,237 | 9,442 | 190 | 7,130 | |||||
Plus Fixed Charges (as above) | 159,826 | 193,850 | 169,261 | 169,095 | 156,107 | ||||||
Total Earnings | $204,116 | $66,531 | $304,216 | $287,924 | $286,803 | ||||||
Ratio of Earnings to Fixed Charges | 1.27 | 0.34 | 1.79 | 1.70 | 1.83 | ||||||
For the year ended December 31, 2000, the Earnings to cover Fixed Charges were deficient by $127,319,000.