EXHIBIT 12 KENTUCKY POWER COMPANY Computation of Ratio of Earnings to Fixed Charges (in thousands except ratio data) Year Ended December 31, 1994 1995 1996 1997 1998 Fixed Charges: Interest on First Mortgage Bonds . . . . . . . . . $19,090 $19,090 $14,914 $14,867 $13,936 Interest on Other Long-term Debt . . . . . . . . . - 2,422 6,446 8,597 12,188 Interest on Short-term Debt. . . . . . . . . . . . 1,621 2,242 2,849 3,034 2,455 Miscellaneous Interest Charges . . . . . . . . . . 485 510 555 559 634 Estimated Interest Element in Lease Rentals. . . . 700 700 800 1,700 1,500 Total Fixed Charges . . . . . . . . . . . . . $21,896 $24,964 $25,564 $28,757 $30,713 Earnings: Net Income . . . . . . . . . . . . . . . . . . . . $25,273 $25,128 $16,973 $20,746 $21,676 Plus Federal Income Taxes. . . . . . . . . . . . . 2,178 3,914 5,119 9,415 9,785 Plus State Income Taxes. . . . . . . . . . . . . . 1,154 1,420 598 2,190 2,096 Plus Fixed Charges (as above). . . . . . . . . . . 21,896 24,964 25,564 28,757 30,713 Total Earnings. . . . . . . . . . . . . . . . $50,501 $55,426 $48,254 $61,108 $64,270 Ratio of Earnings to Fixed Charges . . . . . . . . . 2.30 2.22 1.88 2.12 2.09