EX-12 4 ex12im4q.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,
      
   
2002
  
2003
  
2004
  
2005
  
2006
      
EARNINGS
                               
Income Before Income Taxes
  
$
118,829
  
$
130,696
  
$
204,837
  
$
228,082
  
$
197,273
      
Fixed Charges (as below)
    
169,495
    
156,507
    
139,421
    
133,293
    
142,388
      
Total Earnings
  
$
288,324
  
$
287,203
  
$
344,258
  
$
361,375
  
$
339,661
      
                                     
FIXED CHARGES
                                    
Interest Expense
  
$
93,923
 
$
83,054
  
$
69,071
  
$
65,041
  
$
72,723
      
Credit for Allowance for Borrowed Funds Used
   During Construction
    
2,772
    
3,153
    
1,750
    
4,352
    
7,465
      
Estimated Interest Element in Lease Rentals     72,800     70,300     68,600     63,900     62,200      
Total Fixed Charges
  
$
169,495
$
156,507
  
$
139,421
  
$
133,293
  
$
142,388
      
                                     
Ratio of Earnings to Fixed Charges
    
1.70
    
1.83
    
2.46
    
2.71
    
2.38