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 | ||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 6/30/2011 | 6/30/2011 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Income Before Income Taxes and Equity Earnings | $ | 138,289 | $ | 87,333 | $ | 129,489 | $ | 140,035 | $ | 208,484 | $ | 246,892 | $ | 113,602 | ||||||||
Fixed Charges (as below) | 63,242 | 79,435 | 119,516 | 109,146 | 132,106 | 136,583 | 68,309 | |||||||||||||||
Total Earnings | $ | 201,531 | $ | 166,768 | $ | 249,005 | $ | 249,181 | $ | 340,590 | $ | 383,475 | $ | 181,911 | ||||||||
FIXED CHARGES | ||||||||||||||||||||||
Interest Expense | $ | 55,213 | $ | 60,619 | $ | 93,150 | $ | 70,500 | $ | 86,538 | $ | 89,779 | $ | 43,260 | ||||||||
Credit for Allowance for Borrowed Funds Used During Construction | 2,208 | 9,795 | 19,800 | 29,546 | 33,668 | 34,904 | 19,099 | |||||||||||||||
Trust Dividends | (179 | ) | (179 | ) | (134 | ) | - | - | - | - | ||||||||||||
Estimated Interest Element in Lease Rentals | 6,000 | 9,200 | 6,700 | 9,100 | 11,900 | 11,900 | 5,950 | |||||||||||||||
Total Fixed Charges | $ | 63,242 | $ | 79,435 | $ | 119,516 | $ | 109,146 | $ | 132,106 | $ | 136,583 | $ | 68,309 | ||||||||
Ratio of Earnings to Fixed Charges | 3.18 | 2.09 | 2.08 | 2.28 | 2.57 | 2.80 | 2.66 |