EXHIBIT 12
                         INDIANA MICHIGAN POWER COMPANY
         Computation of Consolidated Ratio of Earnings to Fixed Charges
                        (in thousands except ratio data)

                                                                     Year Ended December 31,
                                                       1996       1997       1998       1999       2000
                                                                                  
Fixed Charges:
  Interest on First Mortgage Bonds. . . . . . . .    $ 41,209   $ 39,678   $ 35,910   $ 31,442   $ 24,154
  Interest on Other Long-term Debt. . . . . . . .      20,100     21,064     27,457     38,623     55,977
  Interest on Short-term Debt . . . . . . . . . .       2,982      3,248      4,903      9,207     19,263
  Miscellaneous Interest Charges. . . . . . . . .       3,262      3,187      3,113      6,754     20,356
  Estimated Interest Element in Lease Rentals . .      82,600     79,700     79,300     73,800     74,100
       Total Fixed Charges. . . . . . . . . . . .    $150,153   $146,877   $150,683   $159,826   $193,850

Earnings:
  Net Income (Loss) . . . . . . . . . . . . . . .    $157,153   $146,740   $ 96,628   $ 32,776  $(132,032)
  Plus Federal Income Taxes . . . . . . . . . . .      76,899     74,223     47,210     18,866     (4,524)
  Plus State Income Taxes . . . . . . . . . . . .       9,270      7,519      4,938     (7,352)     9,237
  Plus Fixed Charges (as above) . . . . . . . . .     150,153    146,877    150,683    159,826    193,850
       Total Earnings . . . . . . . . . . . . . .    $393,475   $375,359   $299,459   $204,116  $  66,531

Ratio of Earnings to Fixed Charges. . . . . . . .        2.62       2.55       1.98       1.27       0.34