EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Twelve
Months
Year Ended December 31, Ended
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1997 1998 1999 2000 2001 9/30/02
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Fixed Charges:
Interest on First Mortgage Bonds $ 39,678 $ 35,910 $ 31,442 $ 24,154 $ 21,647 $ 20,229
Interest on Other Long-term Debt 21,064 27,457 38,623 55,977 56,597 68,989
Interest on Short-term Debt 3,248 4,903 9,207 19,263 13,088 1,898
Miscellaneous Interest Charges 3,187 3,113 6,754 20,356 3,929 3,498
Estimated Interest Element in Lease Rentals 79,700 79,300 73,800 74,100 74,000 74,000
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Total Fixed Charges $146,877 $150,683 $159,826 $193,850 $169,261 $168,614
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Earnings:
Net Income (Loss) $146,740 $ 96,628 $ 32,776 $(132,032) $ 75,788 $ 44,851
Plus Federal Income Taxes 74,223 47,210 18,866 (4,524) 49,725 31,729
Plus State Income Taxes 7,519 4,938 (7,352) 9,237 9,442 5,543
Plus Fixed Charges (as above) 146,877 150,683 159,826 193,850 169,261 168,614
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Total Earnings $375,359 $299,459 $204,116 $ 66,531 $304,216 $250,737
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Ratio of Earnings to Fixed Charges 2.55 1.98 1.27 0.34 1.79 1.48
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