EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Twelve | Six | |||||||||||||||||||||
Months | Months | |||||||||||||||||||||
Year Ended December 31, | Ended | Ended | ||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 6/30/2010 | 6/30/2010 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Taxes | $ | 228,082 | $ | 197,273 | $ | 204,394 | $ | 190,133 | $ | 297,347 | $ | 198,772 | $ | 88,020 | ||||||||
Fixed Charges (as below) | 133,293 | 142,388 | 161,849 | 164,660 | 173,293 | 177,423 | 89,586 | |||||||||||||||
Total Earnings | $ | 361,375 | $ | 339,661 | $ | 366,243 | $ | 354,793 | $ | 470,640 | $ | 376,195 | $ | 177,606 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 65,041 | $ | 72,723 | $ | 80,034 | $ | 89,851 | $ | 101,145 | $ | 103,952 | $ | 52,511 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 4,352 | 7,465 | 5,315 | 4,609 | 8,348 | 9,671 | 5,175 | |||||||||||||||
Estimated Interest Element in Lease Rentals | 63,900 | 62,200 | 76,500 | 70,200 | 63,800 | 63,800 | 31,900 | |||||||||||||||
Total Fixed Charges | $ | 133,293 | $ | 142,388 | $ | 161,849 | $ | 164,660 | $ | 173,293 | $ | 177,423 | $ | 89,586 | ||||||||
Ratio of Earnings to Fixed Charges | 2.71 | 2.38 | 2.26 | 2.15 | 2.71 | 2.12 | 1.98 | |||||||||||||||