Appalachian Power 10-Q 2014 Q2 Quarterly report

EXHIBIT 12

PUBLIC SERVICE COMPANY OF OKLAHOMA

Computation of Ratios of Earnings to Fixed Charges

(in thousands except ratio data)

											Twelve		Six
											Months		Months
	Years Ended December 31,										Ended		Ended
	2009		2010		2011		2012		2013		6/30/2014		6/30/2014
EARNINGS
Income Before Income Taxes	$	119,523	$	122,887	$	192,257	$	180,835	$	163,681	$	144,125	$	49,130
Fixed Charges (as below)	62,235		65,834		58,822		58,984		57,647		58,293		29,364
Total Earnings	$	181,758	$	188,721	$	251,079	$	239,819	$	221,328	$	202,418	$	78,494
FIXED CHARGES
Interest Expense	$	59,093	$	63,362	$	54,700	$	55,286	$	53,175	$	53,672	$	27,096
Credit for Allowance for Borrowed Funds Used During Construction	1,142		572		822		1,098		2,272		2,421		1,168
Estimated Interest Element in Lease Rentals	2,000		1,900		3,300		2,600		2,200		2,200		1,100
Total Fixed Charges	$	62,235	$	65,834	$	58,822	$	58,984	$	57,647	$	58,293	$	29,364
Ratio of Earnings to Fixed Charges	2.92		2.86		4.26		4.06		3.83		3.47		2.67