EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
| Twelve | Nine | |||||||||||||||||||||
| Months | Months | |||||||||||||||||||||
| Year Ended December 31, | Ended | Ended | ||||||||||||||||||||
| 2004 | 2005 | 2006 | 2007 | 2008 | 9/30/2009 | 9/30/2009 | ||||||||||||||||
| EARNINGS | ||||||||||||||||||||||
Income Before Income Taxes | $ | 204,837 | $ | 228,082 | $ | 197,273 | $ | 204,394 | $ | 190,133 | $ | 236,841 | $ | 266,094 | ||||||||
Fixed Charges (as below) | 139,421 | 133,293 | 142,388 | 161,849 | 164,660 | 186,550 | 133,931 | |||||||||||||||
| Total Earnings | $ | 344,258 | $ | 361,375 | $ | 339,661 | $ | 366,243 | $ | 354,793 | $ | 423,391 | $ | 400,025 | ||||||||
| FIXED CHARGES | ||||||||||||||||||||||
| Interest Expense | $ | 69,071 | $ | 65,041 | $ | 72,723 | $ | 80,034 | $ | 89,851 | $ | 108,246 | $ | 75,372 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 1,750 | 4,352 | 7,465 | 5,315 | 4,609 | 8,104 | 5,909 | |||||||||||||||
| Estimated Interest Element in Lease Rentals | 68,600 | 63,900 | 62,200 | 76,500 | 70,200 | 70,200 | 52,650 | |||||||||||||||
| Total Fixed Charges | $ | 139,421 | $ | 133,293 | $ | 142,388 | $ | 161,849 | $ | 164,660 | $ | 186,550 | $ | 133,931 | ||||||||
| Ratio of Earnings to Fixed Charges | 2.46 | 2.71 | 2.38 | 2.26 | 2.15 | 2.26 | 2.98 | |||||||||||||||