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
                                                      1996      1997      1998      1999      2000     3/31/01
                                                                                     
 Fixed Charges:
   Interest on First Mortgage Bonds. . . . . . . .  $ 82,082  $ 81,009  $ 72,057  $ 65,697  $ 56,003  $ 54,034
   Interest on Other Long-term Debt. . . . . . . .    18,025    28,163    40,642    50,712    59,559    60,808
   Interest on Short-term Debt . . . . . . . . . .     3,639     4,569     4,245     5,959     8,847     9,963
   Miscellaneous Interest Charges. . . . . . . . .     7,327     6,857    11,470     8,212    26,284    26,202
   Estimated Interest Element in Lease Rentals . .     6,600     6,000     5,900     6,100     6,300     6,300
        Total Fixed Charges. . . . . . . . . . . .  $117,673  $126,598  $134,314  $136,680  $156,993  $157,307

 Earnings:
   Income Before Extraordinary Item. . . . . . . .  $133,689  $120,514  $ 93,330  $120,492  $ 64,906  $ 79,029
   Plus Federal Income Taxes . . . . . . . . . . .    65,801    54,835    43,941    70,950   117,872   123,128
   Plus State Income Taxes . . . . . . . . . . . .    10,180     8,109     6,845     5,085    15,307    19,588
   Plus Fixed Charges (as above) . . . . . . . . .   117,673   126,598   134,314   136,680   156,993   157,307
        Total Earnings . . . . . . . . . . . . . .  $327,343  $310,056  $278,430  $333,207  $355,078  $379,052

 Ratio of Earnings to Fixed Charges. . . . . . . .      2.78      2.44      2.07      2.43      2.26      2.40