EX-12 3 ex12aep3q.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   Nine  
        Months   Months  
   
Year Ended December 31,
  Ended   Ended  
   
2004
 
2005
 
2006
 
2007
 
2008
 
9/30/2009
 
9/30/2009
 
EARNINGS
                                      
Income Before Income Tax Expense and Equity Earnings
 
$
1,692
 
$
1,463  
$
1,483
 
$
1,663
 
$
2,015
 
$
1,838
  $
1,661
 
Fixed Charges (as below)
   
987
   
913
   
999
   
1,146
   
1,240
   
1,297
   
934
 
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
     (9    (10    (4    (4    (4    (4   (3
Total Earnings
 
$
2,670
 
$
2,366
 
$
2,478
 
$
2,805
 
$
3,251
  $
3,131
  $
2,592
 
                                             
FIXED CHARGES
                                           
Interest Expense
 
$
779
 
$
694
 
$
729
 
$
838
 
$
957
  $ 1,014   $
726
 
Credit for Allowance for Borrowed Funds Used
   During Construction
   
22
   
36
   
82
   
79
   
75
    75      52  
Estimated Interest Element in Lease Rentals     177     173     184     225     204     204     153  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
     9      10      4      4      4      4      3  
Total Fixed Charges
 
$
987
 
$
913
 
$
999
 
$
1,146
 
$
1,240
  $
1,297
  $ 934  
                                             
Ratio of Earnings to Fixed Charges
   
2.70
   
2.59
   
2.48
   
2.44
   
2.62
   
2.41
    2.77