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    6/30/95  
                                                                             
Fixed Charges:                                                                              
  Interest on First Mortgage Bonds. . . $ 55,259   $ 52,933   $ 56,965   $ 53,771   $ 43,564   $ 43,410
  Interest on Other Long-term Debt. . .   33,170     30,202     26,330     23,504     24,725     25,083
  Interest on Short-term Debt . . . . .    1,282      2,564      1,614      1,085      1,883      1,645
  Miscellaneous Interest Charges. . . .    2,458      2,118      2,633      2,832      3,313      3,479
  Estimated Interest Element in 
    Lease Rentals . . . . . . . . . . .   81,000     84,400     84,800     84,300     85,000     87,300
       Total Fixed Charges. . . . . . . $173,169   $172,217   $172,342   $165,492   $158,485   $160,917
                                                                                            
Earnings:                                                                                   
  Net Income. . . . . . . . . . . . . . $118,391   $136,932   $123,948   $129,313   $157,471   $147,382
  Plus Federal Income Taxes . . . . . .   43,855     45,985     30,915     41,552     35,029     44,550
  Plus State Income Taxes . . . . . . .    6,607      5,541      2,281      8,226      6,797      8,132
  Plus Fixed Charges (as above) . . . .  173,169    172,217    172,342    165,492    158,485    160,917
       Total Earnings . . . . . . . . . $342,022   $360,675   $329,486   $344,583   $357,782   $360,981
                                                                                            
Ratio of Earnings to Fixed Charges. . .     1.97       2.09       1.91       2.08       2.25       2.24