EXHIBIT 12.3
Southwestern Electric Power Company
Ratio of Earnings to Fixed Charges
For Years Ended December 31,
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
(thousands, except ratios)
Operating income $139,409 $138,083 $162,776 $145,922 $118,057
Adjustments:
Income taxes 44,396 32,931 41,131 20,623 37,108
Provision for deferred
income taxes (2,244) 2,849 6,287 22,248 (648)
Deferred investment tax credits (4,662) (4,730) (4,786) (4,278) (5,193)
Charges for investments and plant
development costs, net of tax (483) (21,815) -- -- --
Other income and deductions 3,578 312 178 4,656 3,658
Allowance for borrowed and equity
funds used during construction 2,156 2,423 9,334 6,097 2,580
Interest portion of financing
leases 1,194 1,514 1,896 2,562 2,534
-------- -------- -------- -------- --------
Earnings $183,344 $151,567 $216,816 $197,830 $158,096
======== ======== ======== ======== ========
Fixed charges:
Interest on long-term debt $40,440 $44,066 $44,468 $43,395 $ 40,958
Distributions on Trust Preferred
Securities 5,582 -- -- -- --
Interest on short-term debt and other 5,736 8,381 10,706 7,568 4,866
Interest portion of financing leases 1,194 1,514 1,896 2,562 2,534
-------- -------- -------- -------- --------
Fixed charges $52,952 $53,961 $57,070 $53,525 $ 48,358
======== ======== ======== ======== ========
Ratio of earnings to fixed charges 3.46 2.81 3.80 3.70 3.27(1)
(1) The ratio of earnings to fixed charges for 1993 was calculated before
cumulative effect of change in accounting principles.