EX-12 5 x12im.htm COMPUTATION OF RATIOS Computation of Ratios
EXHIBIT 12
 
 
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
   
Year Ended December 31,
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
EARNINGS
                           
Income Before Income Taxes
  
$
134,955
  
$
118,829
  
$
130,696
  
$
204,837
  
$
228,082
  
Fixed Charges (as below)
    
169,261
    
169,495
    
156,507
    
139,421
    
133,293
  
Total Earnings
  
$
304,216
  
$
288,324
  
$
287,203
  
$
344,258
  
$
361,375
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
93,647
 
$
93,923
  
$
83,054
  
$
69,071
  
$
65,041
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
1,614
    
2,772
    
3,153
    
1,750
    
4,352
  
Estimated Interest Element in Lease Rentals     74,000     72,800     70,300     68,600     63,900  
Total Fixed Charges
  
$
169,261
$
169,495
  
$
156,507
  
$
139,421
  
$
133,293
  
                                 
Ratio of Earnings to Fixed Charges
    
1.79
    
1.70
    
1.83
    
2.46
    
2.71