EXHIBIT 12 INDIANA MICHIGAN POWER COMPANY Computation of Consolidated Ratio of Earnings to Fixed Charges (in thousands except ratio data) Year Ended December 31, 1992 1993 1994 1995 1996 Fixed Charges: Interest on First Mortgage Bonds. . . . . . . . $ 56,965 $ 53,771 $ 43,564 $ 43,410 $ 41,209 Interest on Other Long-term Debt. . . . . . . . 26,330 23,504 24,725 23,564 20,100 Interest on Short-term Debt . . . . . . . . . . 1,614 1,085 1,883 2,003 2,982 Miscellaneous Interest Charges. . . . . . . . . 2,866 3,039 3,520 3,472 3,262 Estimated Interest Element in Lease Rentals . . 84,800 84,300 85,000 82,700 82,600 Total Fixed Charges. . . . . . . . . . . . $172,575 $165,699 $158,692 $155,149 $150,153 Earnings: Net Income. . . . . . . . . . . . . . . . . . . $123,983 $129,344 $157,502 $141,092 $157,153 Plus Federal Income Taxes . . . . . . . . . . . 28,191 38,826 32,303 55,990 76,899 Plus State Income Taxes . . . . . . . . . . . . 1,547 7,492 6,063 7,058 9,270 Plus Fixed Charges (as above) . . . . . . . . . 172,575 165,699 158,692 155,149 150,153 Total Earnings . . . . . . . . . . . . . . $326,296 $341,361 $354,560 $359,289 $393,475 Ratio of Earnings to Fixed Charges. . . . . . . . 1.89 2.06 2.23 2.31 2.62