EX-12 2 ex12im3q.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)
 
        Twelve   Nine    
         Months    Months  
    Year Ended December 31,   Ended    Ended  
   
2005
  
2006
  
2007
    
2008
     2009     9/30/2010    9/30/2010  
EARNINGS
                                         
Income Before Income Taxes
  
$
228,082
  
$
197,273
  
$
204,394
  
$
 190,133   $ 297,347   $ 211,153   $ 179,900  
Fixed Charges (as below)
    
133,293
    
142,388
    
161,849
     164,660     173,293     179,031     134,869  
Total Earnings
  
$
361,375
  
$
339,661
  
$
366,243
   $ 354,793   $ 470,640   $ 390,184   $ 314,769  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
65,041
  
$
72,723
  
$
80,034
   $ 89,851   $ 101,145   $ 106,330   $ 80,557  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
4,352
    
7,465
    
5,315
     4,609     8,348     8,901     6,462  
Estimated Interest Element in Lease Rentals     63,900     62,200     76,500     70,200     63,800     63,800     47,850  
Total Fixed Charges
  
$
133,293
  
$
142,388
  
$
161,849
   $ 164,660   $ 173,293   $ 179,031   $ 134,869  
                                             
Ratio of Earnings to Fixed Charges
    
2.71
    
2.38
    
2.26
     2.15     2.71     2.17     2.33