EXHIBIT 12
                    INDIANA MICHIGAN 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. . . . . . . . $ 55,259   $ 52,933   $ 56,965   $ 53,771   $ 43,564   $ 42,884
  Interest on Other Long-term Debt. . . . . . . .   33,170     30,202     26,330     23,504     24,725     24,883
  Interest on Short-term Debt . . . . . . . . . .    1,282      2,564      1,614      1,085      1,883      2,031
  Miscellaneous Interest Charges. . . . . . . . .    2,458      2,118      2,633      2,832      3,313      3,382
  Estimated Interest Element in Lease Rentals . .   81,000     84,400     84,800     84,300     85,000     87,600
       Total Fixed Charges. . . . . . . . . . . . $173,169   $172,217   $172,342   $165,492   $158,485   $160,780
                                                                                                      
Earnings:                                                                                             
  Net Income. . . . . . . . . . . . . . . . . . . $118,391   $136,932   $123,948   $129,313   $157,471   $150,883
  Plus Federal Income Taxes . . . . . . . . . . .   43,855     45,985     30,915     41,552     35,029     44,414
  Plus State Income Taxes . . . . . . . . . . . .    6,607      5,541      2,281      8,226      6,797      6,822
  Plus Fixed Charges (as above) . . . . . . . . .  173,169    172,217    172,342    165,492    158,485    160,780
       Total Earnings . . . . . . . . . . . . . . $342,022   $360,675   $329,486   $344,583   $357,782   $362,899
                                                                                                      
Ratio of Earnings to Fixed Charges. . . . . . . .     1.97       2.09       1.91       2.08       2.25       2.25