EX-12 3 ex12aep3q.htm COMPUTATION OF RATIOS - AEP 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   
   
Years Ended December 31,
   Ended     Ended  
   
2007
  
2008
  
2009
    2010      2011    9/30/2012     9/30/2012  
EARNINGS
                                          
Income Before Income Tax Expense and Equity Earnings
  
$
1,663
  
$
2,015
  
$
1,938
  
$
1,849
   $ 
2,367
   $  2,063   $  1,828  
Fixed Charges (as below)
    
1,146
    
1,240
    
1,237
    
1,254
    
1,209
     1,187     903  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      (4 )     (4 )     (4 )    (4 )   
(8
 )    (5 )    -  
Total Earnings
  
$
2,805
  
$
3,251
   $
3,171
  
$
3,099
   $ 
3,568
   $  3,245   $  2,731  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
838
  
$
957
   $ 973  
$
 999   $  933   $  907   $  697  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
79
    
75
     67     53     63     70     52  
Estimated Interest Element in Lease Rentals     225     204     193     198     205     205     154  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      4      4      4      4     8     5     -  
Total Fixed Charges
  
$
1,146
  
$
1,240
   $
1,237
  
$
1,254
   $  1,209   $  1,187   $  903  
                                             
Ratio of Earnings to Fixed Charges
    
2.44
    
2.62
    
2.56
    
2.47
     2.95     2.73     3.02