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
                                          1992       1993       1994       1995       1996    9/30/97  
                                                                             
Fixed Charges:                                                                              
  Interest on First Mortgage Bonds. . . $ 56,965   $ 53,771   $ 43,564   $ 43,410   $ 41,209   $ 40,004
  Interest on Other Long-term Debt. . .   26,330     23,504     24,725     23,564     20,100     20,969
  Interest on Short-term Debt . . . . .    1,614      1,085      1,883      2,003      2,982      2,504
  Miscellaneous Interest Charges. . . .    2,866      3,039      3,520      3,472      3,262      3,238
  Estimated Interest Element in 
    Lease Rentals . . . . . . . . . . .   84,800     84,300     85,000     82,700     82,600     82,600
       Total Fixed Charges. . . . . . . $172,575   $165,699   $158,692   $155,149   $150,153   $149,315
                                                                                            
Earnings:                                                                                   
  Net Income. . . . . . . . . . . . . . $123,983   $129,344   $157,502   $141,092   $157,153   $166,590
  Plus Federal Income Taxes . . . . . .   28,191     38,826     32,303     55,990     76,899     82,047
  Plus State Income Taxes . . . . . . .    1,547      7,492      6,063      7,058      9,270      8,595
  Plus Fixed Charges (as above) . . . .  172,575    165,699    158,692    155,149    150,153    149,315
       Total Earnings . . . . . . . . . $326,296   $341,361   $354,560   $359,289   $393,475   $406,547
                                                                                            
Ratio of Earnings to Fixed Charges. . .     1.89       2.06       2.23       2.31       2.62       2.72