EXHIBIT 12
AEP TEXAS CENTRAL COMPANY AND SUBSIDIARIES
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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Earnings:
Income Before Extraordinary Item and
Cumulative Effect of Accounting Change $161,511 $187,718 $189,567 $184,787 $275,941 $345,985
Plus Federal Income Taxes 126,738 83,508 80,797 174,073 30,102 34,511
Plus State Income Taxes - - 3,532 14,849 3,616 8,515
Plus Provision for Deferred Income Taxes (8,328) 19,938 16,263 (72,568) 113,655 145,127
Plus Deferred Investment Tax Credits (3,858) (5,207) (5,207) (5,207) (5,207) (5,207)
Plus Fixed Charges 124,807 118,911 132,785 125,194 132,236 133,354
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Total Earnings $400,870 $404,868 $417,737 $421,128 $550,343 $662,285
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Fixed Charges:
Interest on Long-term Debt $ 93,301 $ 87,413 $ 96,212 $ 86,980 $ 99,839* $101,714*
Interest on Short-term Debt 19,506 19,498 22,830 25,023 19,442* 18,685*
Distributions on Trust Preferred Securities 12,000 12,000 11,940 11,208 10,560 10,560
Estimated Interest Element in Lease Rentals - - 1,803 1,983 2,395 2,395
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Fixed Charges $124,807 $118,911 $132,785 $125,194 $132,236 $133,354
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Ratio of Earnings to Fixed Charges 3.21 3.40 3.14 3.36 4.16 4.96
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* Certain amounts have been reclassified between interest on short-term and
long-term debt compared to periods prior to January 1, 2002. This
reclassification had no affect on the ratio.