Exhibit 12.3
Southwestern Electric Power Company
Consolidated Ratio of Earnings to Fixed Charges
For Years Ended December 31,
1999 1998 1997 1996 1995
---------------------------------------------------
(thousands, except ratios)
Operating income $147,524 $150,787 $139,409 $138,083 $162,776
Adjustments
Income taxes 55,343 62,595 44,396 32,931 41,131
Provision for deferred
income taxes (17,098) (11,850) (2,244) 2,849 6,287
Deferred investment tax
credits (4,565) (4,631) (4,662) (4,730) (4,786)
Charges for investments
and plant development
costs, net of tax -- -- (483) (21,815) --
Other income and deductions (2,000) 1,115 3,578 312 178
Allowance for borrowed and
equity funds used
during construction 1,984 2,687 2,156 2,423 9,334
Interest portion of
financing leases 335 598 1,194 1,514 1,896
---------------------------------------------------
Earnings $181,523 $201,301 $183,344 $151,567 $216,816
===================================================
Fixed charges:
Interest on long-term
debt $38,380 $39,233 $40,440 $44,066 $44,468
Distributions on Trust
Preferred Securities 8,662 8,662 5,582 -- --
Interest on short-term
debt & other 13,800 8,591 5,736 8,381 10,706
Interest portion of
financing leases 335 598 1,194 1,514 1,896
---------------------------------------------------
Fixed Charges $61,177 $57,084 $52,952 $53,961 $57,070
===================================================
Ratio of earnings to fixed
charges 2.97 3.53 3.46 2.81 3.80
4-18