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 | |||||||||||||||||||||
Years Ended December 31, | Ended | Ended | ||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 6/30/2011 | 6/30/2011 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Taxes | $ | 197,273 | $ | 204,394 | $ | 190,133 | $ | 297,347 | $ | 189,517 | $ | 219,820 | $ | 118,323 | ||||||||
Fixed Charges (as below) | 142,388 | 161,849 | 164,660 | 173,293 | 174,965 | 170,512 | 84,233 | |||||||||||||||
Total Earnings | $ | 339,661 | $ | 366,243 | $ | 354,793 | $ | 470,640 | $ | 364,482 | $ | 390,332 | $ | 202,556 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 72,723 | $ | 80,034 | $ | 89,851 | $ | 101,145 | $ | 104,465 | $ | 101,338 | $ | 49,384 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 7,465 | 5,315 | 4,609 | 8,348 | 8,500 | 7,174 | 3,849 | |||||||||||||||
Estimated Interest Element in Lease Rentals | 62,200 | 76,500 | 70,200 | 63,800 | 62,000 | 62,000 | 31,000 | |||||||||||||||
Total Fixed Charges | $ | 142,388 | $ | 161,849 | $ | 164,660 | $ | 173,293 | $ | 174,965 | $ | 170,512 | $ | 84,233 | ||||||||
Ratio of Earnings to Fixed Charges | 2.38 | 2.26 | 2.15 | 2.71 | 2.08 | 2.28 | 2.40 | |||||||||||||||