EX-12 6 ex12im4q.htm COMPUTATION OF RATIOS Unassociated Document
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,
  
   
2003
  
2004
  
2005
  
2006
    
2007
  
EARNINGS
                            
Income Before Income Taxes
  
$
130,696
  
$
204,837
  
$
228,082
  
$
197,273
   $ 
 204,394
  
Fixed Charges (as below)
    
156,507
    
139,421
    
133,293
    
142,388
    
 161,849
  
Total Earnings
  
$
287,203
  
$
344,258
  
$
361,375
  
$
339,661
   $
 366,243
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
83,054
  
$
69,071
  
$
65,041
  
$
72,723
   $
 80,034
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
3,153
    
1,750
    
4,352
    
7,465
      5,315  
Estimated Interest Element in Lease Rentals     70,300     68,600     63,900     62,200    
 76,500
  
Total Fixed Charges
  
$
156,507
  
$
139,421
  
$
133,293
  
$
142,388
   $
 161,849
  
                                 
Ratio of Earnings to Fixed Charges
    
1.83
    
2.46
    
2.71
    
2.38
    
 2.26