EXHIBIT 12
                         APPALACHIAN POWER COMPANY
      Computation of Consolidated Ratio of Earnings to Fixed Charges
                     (in thousands except ratio data)

                                                                                                           Twelve
                                                                                                           Months
                                                                    Year Ended December 31,                Ended
                                                      1990       1991      1992      1993        1994      3/31/95  
                                                                                         
 Fixed Charges:                                                                                       
   Interest on First Mortgage Bonds. . . . . . . .  $66,403   $ 72,800   $ 84,177  $ 80,472    $ 75,815    $ 76,126
   Interest on Other Long-term Debt. . . . . . . .   19,637     18,282     17,986    16,846      16,415      16,414
   Interest on Short-term Debt . . . . . . . . . .    1,633      3,089      1,792     1,615       3,366       4,677
   Miscellaneous Interest Charges. . . . . . . . .    1,999      3,011      2,617     2,954       3,913       3,940
   Estimated Interest Element in Lease Rentals . .    5,300      5,700      6,700     7,900       7,700       7,700
        Total Fixed Charges. . . . . . . . . . . .  $94,972   $102,882   $113,272  $109,787    $107,209    $108,857
                                                                                                       
 Earnings:                                                                                             
   Net Income. . . . . . . . . . . . . . . . . . . $107,988   $140,419   $131,419  $125,132    $102,345    $111,750
   Plus Federal Income Taxes . . . . . . . . . . .   41,194     47,227     46,017    51,681      39,599      45,600
   Plus State Income Taxes . . . . . . . . . . . .    5,878      3,650      2,649     8,887       5,910       6,168
   Plus Fixed Charges (as above) . . . . . . . . .   94,972    102,882    113,272   109,787     107,209     108,857
        Total Earnings . . . . . . . . . . . . . . $250,032   $294,178   $293,357  $295,487    $255,063    $272,375
                                                                                                       
 Ratio of Earnings to Fixed Charges. . . . . . . .     2.63       2.85       2.58      2.69        2.37        2.50