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 | |||||||||||||||||||||
Year Ended December 31, | Ended | Ended | ||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 6/30/2010 | 6/30/2010 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Taxes and Equity Earnings | $ | 114,341 | $ | 138,289 | $ | 87,333 | $ | 129,489 | $ | 140,035 | $ | 157,064 | $ | 75,194 | ||||||||
Fixed Charges (as below) | 55,808 | 63,242 | 79,435 | 119,516 | 109,146 | 118,014 | 62,432 | |||||||||||||||
Total Earnings | $ | 170,149 | $ | 201,531 | $ | 166,768 | $ | 249,005 | $ | 249,181 | $ | 275,078 | $ | 137,626 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 50,089 | $ | 55,213 | $ | 60,619 | $ | 93,150 | $ | 70,500 | $ | 75,230 | $ | 40,019 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 1,198 | 2,208 | 9,795 | 19,800 | 29,546 | 33,684 | 17,863 | |||||||||||||||
Trust Dividends | (179 | ) | (179 | ) | (179 | ) | (134 | ) | - | - | - | |||||||||||
Estimated Interest Element in Lease Rentals | 4,700 | 6,000 | 9,200 | 6,700 | 9,100 | 9,100 | 4,550 | |||||||||||||||
Total Fixed Charges | $ | 55,808 | $ | 63,242 | $ | 79,435 | $ | 119,516 | $ | 109,146 | $ | 118,014 | $ | 62,432 | ||||||||
Ratio of Earnings to Fixed Charges | 3.04 | 3.18 | 2.09 | 2.08 | 2.28 | 2.33 | 2.20 |