EXHIBIT 12 KENTUCKY POWER COMPANY Computation of Ratios of Earnings to Fixed Charges (in thousands except ratio data) Twelve Months Year Ended December 31, Ended ----------------------------------------------- 1997 1998 1999 2000 2001 9/30/02 ---- ---- ---- ---- ---- ------- Fixed Charges: Interest on First Mortgage Bonds $14,867 $13,936 $12,712 $ 9,503 $ 6,178 $ 3,243 Interest on Other Long-term Debt 8,597 12,188 13,525 16,367 18,300 21,695 Interest on Short-term Debt 3,034 2,455 2,552 3,295 2,329 1,953 Miscellaneous Interest Charges 559 634 869 2,523 1,059 616 Estimated Interest Element in Lease Rentals 1,700 1,500 1,200 1,700 1,200 1,200 ------- ------- ------- ------- ------- ------- Total Fixed Charges $28,757 $30,713 $30,858 $33,388 $29,066 $28,707 ======= ======= ======= ======= ======= ======= Earnings: Net Income $20,746 $21,676 $25,430 $20,763 $21,565 $27,922 Plus Federal Income Taxes 9,415 9,785 12,993 17,884 9,553 13,408 Plus State Income Tax Expense (Credit) 2,190 2,096 2,784 2,457 489 (1,563) Plus Fixed Charges (as above) 28,757 30,713 30,858 33,388 29,066 28,707 ------- ------- ------- ------- ------- ------- Total Earnings $61,108 $64,270 $72,065 $74,492 $60,673 $68,474 ======= ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges 2.12 2.09 2.33 2.23 2.08 2.38 ==== ==== ==== ==== ==== ====