EXHIBIT 12
APPALACHIAN POWER COMPANY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Twelve
Months
Year Ended December 31, Ended
-----------------------------------------------
1997 1998 1999 2000 2001 3/31/02
---- ---- ---- ---- ---- -------
Fixed Charges:
Interest on First Mortgage Bonds $ 81,009 $ 72,057 $ 65,697 $ 56,003 $ 48,441 $ 47,379
Interest on Other Long-term Debt 28,163 40,642 50,712 59,559 61,045 60,595
Interest on Short-term Debt 4,569 4,245 5,959 8,847 10,722 9,966
Miscellaneous Interest Charges 6,857 11,470 8,212 26,284 4,285 4,069
Estimated Interest Element in Lease Rentals 6,000 5,900 6,100 6,300 5,800 5,800
-------- -------- -------- -------- -------- --------
Total Fixed Charges $126,598 $134,314 $136,680 $156,993 $130,293 $127,809
======== ======== ======== ======== ======== ========
Earnings:
Income Before Extraordinary Item $120,514 $ 93,330 $120,492 $ 64,906 $161,818 $155,373
Plus Federal Income Taxes 54,835 43,941 70,950 117,872 81,934 78,375
Plus State Income Taxes 8,109 6,845 5,085 15,307 14,789 13,898
Plus Fixed Charges (as above) 126,598 134,314 136,680 156,993 130,293 127,809
-------- -------- -------- -------- -------- --------
Total Earnings $310,056 $278,430 $333,207 $355,078 $388,834 $375,455
======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges 2.44 2.07 2.43 2.26 2.98 2.93
==== ==== ==== ==== ==== ====