EXHIBIT 12 KENTUCKY POWER COMPANY Computation of Ratio of Earnings to Fixed Charges (in thousands except ratio data) Year Ended December 31, -------------------------------------------------- 1995 1996 1997 1998 1999 ---- ---- ---- ---- ---- Fixed Charges: Interest on First Mortgage Bonds . . . . . . . . . $19,090 $14,914 $14,867 $13,936 $12,712 Interest on Other Long-term Debt . . . . . . . . . 2,422 6,446 8,597 12,188 13,525 Interest on Short-term Debt. . . . . . . . . . . . 2,242 2,849 3,034 2,455 2,552 Miscellaneous Interest Charges . . . . . . . . . . 510 555 559 634 869 Estimated Interest Element in Lease Rentals. . . . 700 800 1,700 1,500 1,200 ------- ------- ----- ----- ------- Total Fixed Charges . . . . . . . . . . . . . $24,964 $25,564 $28,757 $30,713 $30,858 ------- ------- ------- ------- ======= Earnings: Net Income . . . . . . . . . . . . . . . . . . . . $25,128 $16,973 $20,746 $21,676 $25,430 Plus Federal Income Taxes. . . . . . . . . . . . . 3,914 5,119 9,415 9,785 12,993 Plus State Income Taxes. . . . . . . . . . . . . . 1,420 598 2,190 2,096 2,784 Plus Fixed Charges (as above). . . . . . . . . . . 24,964 25,564 28,757 30,713 30,858 ------- ------ ------ ------- ------- Total Earnings. . . . . . . . . . . . . . . . $55,426 $48,254 $61,108 $64,270 $72,065 ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges . . . . . . . . . 2.22 1.88 2.12 2.09 2.33 ==== ==== ==== ==== ====