EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
Twelve
Year Ended December 31, Months
----------------------------------------------- Ended
1998 1999 2000 2001 2002 6/30/03
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Fixed Charges:
Interest on First Mortgage Bonds $ 35,910 $ 31,442 $ 24,154 $ 21,647 $ 19,458 $ 15,368
Interest on Other Long-term Debt 27,457 38,623 55,977 56,597 71,837 72,722
Interest on Short-term Debt 4,903 9,207 19,263 13,088 439 844
Miscellaneous Interest Charges 3,113 6,754 20,356 3,929 4,961 5,755
Estimated Interest Element in Lease Rentals 79,300 73,800 74,100 74,000 72,400 72,400
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Total Fixed Charges $150,683 $159,826 $193,850 $169,261 $169,095 $167,089
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Earnings:
Net Income(Loss)Before
Cumulative Effect of Accounting Change $ 96,628 $ 32,776 $(132,032) $ 75,788 $ 73,992 $ 84,936
Plus Federal Income Taxes 47,210 18,866 (4,524) 49,725 44,647 50,565
Plus State Income Taxes 4,938 (7,352) 9,237 9,442 190 652
Plus Fixed Charges (as above) 150,683 159,826 193,850 169,261 169,095 167,089
-------- -------- -------- -------- -------- --------
Total Earnings $299,459 $204,116 $ 66,531 $304,216 $287,924 $303,242
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Ratio of Earnings to Fixed Charges 1.98 1.27 0.34 1.79 1.70 1.81
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For the year ended December 31, 2000, the Earnings to cover Fixed Charges were
deficient by $127,319,000.