Indiana Michigan Power 10-Q 2012 Q2 Quarterly report

EXHIBIT 12

SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED 

Computation of Consolidated Ratios of Earnings to Fixed Charges

(in thousands except ratio data)

													Twelve		Six
													Months		Months
	Years Ended December 31,												Ended		Ended
	2007			2008				2009	2010		2011		6/30/2012		6/30/2012
EARNINGS
Income Before Income Taxes and Equity Earnings	$	87,333		$	129,489		$	140,035	$	208,484	$	219,283	$	219,630	$	113,949
Fixed Charges (as below)		79,435			119,516			109,146		132,106		134,285		139,787		73,661
Total Earnings	$	166,768		$	249,005		$	249,181	$	340,590	$	353,568	$	359,417	$	187,610
FIXED CHARGES
Interest Expense	$	60,619		$	93,150		$	70,500	$	86,538	$	81,781	$	82,233	$	43,712
Credit for Allowance for Borrowed Funds    Used During Construction		9,795			19,800			29,546		33,668		40,904		45,954		24,149
Trust Dividends		(179	)		(134	)		-		-		-		-		-
Estimated Interest Element in Lease Rentals		9,200			6,700			9,100		11,900		11,600		11,600		5,800
Total Fixed Charges	$	79,435		$	119,516		$	109,146	$	132,106	$	134,285	$	139,787	$	73,661
Ratio of Earnings to Fixed Charges		2.09			2.08			2.28		2.57		2.63		2.57		2.54