EX-12 2 ex12im2q.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     Six  
          Months     Months  
    Years Ended December 31,     Ended     Ended  
   
2006
  
2007
    
2008
     2009    2010     6/30/2011     6/30/2011  
EARNINGS
                                          
Income Before Income Taxes
  
$
197,273
  
$
204,394
  
$
 190,133   $ 297,347   $ 189,517   $  219,820    $  118,323   
Fixed Charges (as below)
    
142,388
    
161,849
     164,660     173,293     174,965     170,512      84,233   
Total Earnings
  
$
339,661
  
$
366,243
   $ 354,793   $ 470,640   $ 364,482   $  390,332    $  202,556   
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
72,723
  
$
80,034
   $ 89,851   $ 101,145   $ 104,465   $  101,338    $  49,384   
Credit for Allowance for Borrowed Funds Used
   During Construction
    
7,465
    
5,315
     4,609     8,348     8,500     7,174      3,849   
Estimated Interest Element in Lease Rentals     62,200     76,500     70,200     63,800     62,000     62,000      31,000   
Total Fixed Charges
  
$
142,388
  
$
161,849
   $ 164,660   $ 173,293   $ 174,965   $  170,512    $  84,233   
                                             
Ratio of Earnings to Fixed Charges
    
2.38
    
2.26
     2.15     2.71     2.08     2.28      2.40