EXHIBIT 12
                         APPALACHIAN POWER COMPANY
      Computation of Consolidated Ratio of Earnings to Fixed Charges
                     (in thousands except ratio data)

                                                                                                           Twelve
                                                                                                           Months
                                                                    Year Ended December 31,                Ended
                                                      1995       1996      1997      1998        1999      9/30/00
                                                                                         
 Fixed Charges:
   Interest on First Mortgage Bonds. . . . . . . . $ 80,777   $ 82,082   $ 81,009  $ 72,057    $ 65,697    $ 58,033
   Interest on Other Long-term Debt. . . . . . . .   16,404     18,025     28,163    40,642      50,712      58,468
   Interest on Short-term Debt . . . . . . . . . .    5,119      3,639      4,569     4,245       5,959       8,176
   Miscellaneous Interest Charges. . . . . . . . .    5,323      7,327      6,857    11,470       8,212       5,142
   Estimated Interest Element in Lease Rentals . .    7,000      6,600      6,000     5,900       6,100       6,100
        Total Fixed Charges. . . . . . . . . . . . $114,623   $117,673   $126,598  $134,314    $136,680    $135,919

 Earnings:
   Net Income. . . . . . . . . . . . . . . . . . . $115,900   $133,689   $120,514  $ 93,330    $120,492    $157,488
   Plus Federal Income Taxes . . . . . . . . . . .   53,355     65,801     54,835    43,941      70,950      83,675
   Plus State Income Taxes . . . . . . . . . . . .    7,273     10,180      8,109     6,845       5,085       4,296
   Plus Fixed Charges (as above) . . . . . . . . .  114,623    117,673    126,598   134,314     136,680     135,919
        Total Earnings . . . . . . . . . . . . . . $291,151   $327,343   $310,056  $278,430    $333,207    $381,378

 Ratio of Earnings to Fixed Charges. . . . . . . .     2.54       2.78       2.44      2.07        2.43        2.80