EX-12 3 ex12aep3q.htm COMPUTATION OF RATIOS Computation of Ratios
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
   
Year Ended December 31,
  
Twelve
Months
Ended
    
Nine
Months
Ended
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
9/30/2006
    
 9/30/2006
  
EARNINGS
                                            
Income Before Income Tax Expense, Minority Interest
  Expense and Equity Earnings
  
$
1,481
  
$
814
  
$
872
  
$
1,684
  
$
1,453
  
$
1,262
   $
1,210
  
Fixed Charges (as below)
    
1,103
    
1,048
    
1,050
    
989
    
916
    
944
    
714
  
Preferred Security Dividend Requirements of 
  Consolidated Subsidiaries
    
(15
 )   
(18
 )  
(15
 )  
(9
 )  
(10
 )  
(4
 )  
(3
 ) 
Total Earnings
  
$
2,569
  
$
1,844
  
$
1,907
  
$
2,664
  
$
2,359
  
$
2,202
   $
1,921
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
833
  
$
775
  
$
814
  
$
781
  
$
697
  
$
691
   $
518
  
Credit for Allowance for Borrowed Funds Used During 
  Construction
    
42
    
32
    
24
    
22
    
36
    
76
    
64
  
Estimated Interest Element in Lease Rentals 
    
213
    
223
    
197
    
177
    
173
    
173
    
129
  
Preferred Security Dividend Requirements of 
  Consolidated Subsidiaries
     15     18     15     9     10     4    
3
  
Total Fixed Charges
  
$
1,103
  
$
1,048
  
$
1,050
  
$
989
  
$
916
  
$
944
   $
714
  
                                             
Ratio of Earnings to Fixed Charges
    
2.32
    
1.75
    
1.81
    
2.69
    
2.57
    
2.33
    
2.69