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
                                          1994       1995       1996       1997       1998    3/31/99  
                                                                             
Fixed Charges:                                                                              
  Interest on First Mortgage Bonds. . . $ 43,564   $ 43,410   $ 41,209   $ 39,678   $ 35,910   $ 34,926
  Interest on Other Long-term Debt. . .   24,725     23,564     20,100     21,064     27,457     30,509
  Interest on Short-term Debt . . . . .    1,883      2,003      2,982      3,248      4,903      4,559
  Miscellaneous Interest Charges. . . .    3,520      3,472      3,262      3,187      3,113      5,999
  Estimated Interest Element in 
    Lease Rentals . . . . . . . . . . .   85,000     82,700     82,600     79,700     79,300     79,300
       Total Fixed Charges. . . . . . . $158,692   $155,149   $150,153   $146,877   $150,683   $155,293
                                                                                            
Earnings:                                                                                   
  Net Income. . . . . . . . . . . . . . $157,502   $141,092   $157,153   $146,740   $ 96,628   $ 82,954
  Plus Federal Income Taxes . . . . . .   32,303     55,990     76,899     74,223     47,210     42,167
  Plus State Income Taxes . . . . . . .    6,063      7,058      9,270      7,519      4,938      7,371
  Plus Fixed Charges (as above) . . . .  158,692    155,149    150,153    146,877    150,683    155,293
       Total Earnings . . . . . . . . . $354,560   $359,289   $393,475   $375,359   $299,459   $287,785
                                                                                            
Ratio of Earnings to Fixed Charges. . .     2.23       2.31       2.62       2.55       1.98       1.85