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
                                                      1994       1995      1996      1997        1998      3/31/99  
                                                                                         
 Fixed Charges:                                                                                       
   Interest on First Mortgage Bonds. . . . . . . . $ 75,815   $ 80,777   $ 82,082  $ 81,009    $ 72,057    $ 69,886
   Interest on Other Long-term Debt. . . . . . . .   16,415     16,404     18,025    28,163      40,642      43,597
   Interest on Short-term Debt . . . . . . . . . .    3,366      5,119      3,639     4,569       4,245       3,514
   Miscellaneous Interest Charges. . . . . . . . .    3,913      5,323      7,327     6,857      11,470      12,061
   Estimated Interest Element in Lease Rentals . .    7,700      7,000      6,600     6,000       5,900       5,900
        Total Fixed Charges. . . . . . . . . . . . $107,209   $114,623   $117,673  $126,598    $134,314    $134,958
                                                                                                       
 Earnings:                                                                                             
   Net Income. . . . . . . . . . . . . . . . . . . $102,345   $115,900   $133,689  $120,514    $ 93,330    $ 99,392
   Plus Federal Income Taxes . . . . . . . . . . .   39,599     53,355     65,801    54,835      43,941      50,064
   Plus State Income Taxes . . . . . . . . . . . .    5,910      7,273     10,180     8,109       6,845       6,368
   Plus Fixed Charges (as above) . . . . . . . . .  107,209    114,623    117,673   126,598     134,314     134,958
        Total Earnings . . . . . . . . . . . . . . $255,063   $291,151   $327,343  $310,056    $278,430    $290,782
                                                                                                       
 Ratio of Earnings to Fixed Charges. . . . . . . .     2.37       2.54       2.78      2.44        2.07        2.15