EX-12 3 ex12aep2q.htm COMPUTATION OF RATIOS Unassociated Document
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data) 
 
        Twelve   Six  
        Months   Months  
   
Year Ended December 31,
   Ended   Ended  
   
2004
  
2005
  
2006
  
2007
  
2008
  
6/30/2009
  
6/30/2009
  
EARNINGS
                                       
Income Before Income Tax Expense and Equity Earnings
  
$
1,692
  
$
 1,463  
$
1,483
  
$
1,663
  
$
2,015
  
$
 1,755   $ 1,011  
Fixed Charges (as below)
    
987
    
913
    
999
    
1,146
    
1,240
     1,268      620  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      (9 )     (10 )     (4 )     (4 )     (4 )     (4 )     (2 ) 
Total Earnings
  
$
2,670
  
$
2,366
  
$
2,478
  
$
2,805
  
$
3,251
   $ 3,019   $ 1,629  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
779
  
$
694
  
$
729
  
$
838
  
$
957
   $ 982   $  478  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
22
    
36
    
82
    
79
    
75
     78      38  
Estimated Interest Element in Lease Rentals     177     173     184     225     204     204      102  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      9      10      4      4      4      4      2  
Total Fixed Charges
  
$
987
  
$
913
  
$
999
  
$
1,146
  
$
1,240
   $
1,268
   $  620  
                                             
Ratio of Earnings to Fixed Charges
    
2.70
    
2.59
    
2.48
    
2.44
    
2.62
     2.38     2.62