EX-12 5 ex12im4q.htm COMPUTATION OF RATIOS ex12im4q.htm
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,  
   
2005
  
2006
  
2007
    
2008
     2009   
EARNINGS
                             
Income Before Income Taxes
  
$
228,082
  
$
197,273
  
$
204,394
  
$
 190,133   $ 297,347  
Fixed Charges (as below)
    
133,293
    
142,388
    
161,849
     164,660     173,293  
Total Earnings
  
$
361,375
  
$
339,661
  
$
366,243
   $ 354,793   $ 470,640  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
65,041
  
$
72,723
  
$
80,034
   $ 89,851   $ 101,145  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
4,352
    
7,465
    
5,315
     4,609     8,348  
Estimated Interest Element in Lease Rentals     63,900     62,200     76,500     70,200     63,800  
Total Fixed Charges
  
$
133,293
  
$
142,388
  
$
161,849
   $ 164,660   $ 173,293  
                                 
Ratio of Earnings to Fixed Charges
    
2.71
    
2.38
    
2.26
     2.15     2.71