Exhibit 12.3
Southwestern Electric Power Company
Consolidated Ratio of Earnings to Fixed Charges
For Years Ended December 31,
1998 1997 1996 1995 1994
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(thousands, except ratios)
Operating income $150,787 $139,409 $138,083 $162,776 $145,922
Adjustments
Income taxes 62,595 44,396 32,931 41,131 20,623
Provision for deferred
income taxes (11,850) (2,244) 2,849 6,287 22,248
Deferred investment tax
credits (4,631) (4,662) (4,730) (4,786) (4,278)
Charges for investments
and plant development
costs, net of tax -- (483) (21,815) -- --
Other income and deductions 1,115 3,578 312 178 4,656
Allowance for borrowed and
equity funds used
during construction 2,687 2,156 2,423 9,334 6,097
Interest portion of
financing leases 598 1,194 1,514 1,896 2,562
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Earnings $201,301 $183,334 $151,567 $216,816 $197,830
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Fixed charges:
Interest on long-term
debt $39,233 $40,440 $44,066 $44,468 $43,395
Distributions on Trust
Preferred Securities 8,662 5,582 -- -- --
Interest on short-term
debt & other 8,591 5,736 8,381 10,706 7,568
Interest portion of
financing leases 598 1,194 1,514 1,896 2,562
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Fixed Charges $57,084 $52,952 $53,961 $57,070 $53,525
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Ratio of earnings to fixed
charges 3.53 3.46 2.81 3.80 3.70
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