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
                                                      1991       1992      1993      1994        1995      3/31/96  
                                                                                         
 Fixed Charges:                                                                                       
   Interest on First Mortgage Bonds. . . . . . . . $ 72,800   $ 84,177   $ 80,472  $ 75,815    $ 80,777    $ 82,342
   Interest on Other Long-term Debt. . . . . . . .   18,282     17,986     16,846    16,415      16,404      16,368
   Interest on Short-term Debt . . . . . . . . . .    3,089      1,792      1,615     3,366       5,119       4,978
   Miscellaneous Interest Charges. . . . . . . . .    3,011      2,617      2,954     3,913       5,323       6,409
   Estimated Interest Element in Lease Rentals . .    5,700      6,700      7,900     7,700       7,000       7,000
        Total Fixed Charges. . . . . . . . . . . . $102,882   $113,272   $109,787  $107,209    $114,623    $117,097
                                                                                                       
 Earnings:                                                                                             
   Net Income. . . . . . . . . . . . . . . . . . . $140,419   $131,419   $125,132  $102,345    $115,900    $129,587
   Plus Federal Income Taxes . . . . . . . . . . .   47,227     46,017     51,681    39,599      53,355      57,547
   Plus State Income Taxes . . . . . . . . . . . .    3,650      2,649      8,887     5,910       7,273       6,941
   Plus Fixed Charges (as above) . . . . . . . . .  102,882    113,272    109,787   107,209     114,623     117,097
        Total Earnings . . . . . . . . . . . . . . $294,178   $293,357   $295,487  $255,063    $291,151    $311,172
                                                                                                       
 Ratio of Earnings to Fixed Charges. . . . . . . .     2.85       2.58       2.69      2.37        2.54        2.65