EX-12 6 x12im.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,
  
   
2000
  
2001
  
2002
  
2003
  
2004
  
FIXED CHARGES
                           
Interest on First Mortgage Bonds
  
$
24,154
  
$
21,647
  
$
19,458
  
$
8,655
  
$
1,009
  
Interest on Other Long-term Debt
    
55,977
    
56,597
    
71,837
    
71,110
    
60,448
  
Interest on Short-term Debt
    
19,263
    
13,088
    
439
    
1,200
    
2,901
  
Miscellaneous Interest Charges
    
20,356
    
3,929
    
4,961
    
5,242
    
6,463
  
Estimated Interest Element in Lease Rentals
    
74,100
    
74,000
    
72,800
    
70,300
    
68,600
  
Total Fixed Charges
  
$
193,850
  
$
169,261
  
$
169,495
  
$
156,507
  
$
139,421
  
                                 
EARNINGS
                                
Net Income (Loss) Before Cumulative Effect of Accounting Change
  
$
(132,032
)
$
75,788
  
$
73,992
  
$
89,548
  
$
133,222
  
Plus Federal Income Taxes
    
(4,524
)
  
49,725
    
44,647
    
34,018
    
60,689
  
Plus State Income Taxes
    
9,237
    
9,442
    
190
    
7,130
    
10,926
  
Plus Fixed Charges (as above)
    
193,850
    
169,261
    
169,495
    
156,507
    
139,421
  
Total Earnings
  
$
66,531
  
$
304,216
  
$
288,324
  
$
287,203
  
$
344,258
  
                                 
Ratio of Earnings to Fixed Charges
    
0.34
    
1.79
    
1.70
    
1.83
    
2.46
  
                                 
                                 
For the year ended December 31, 2000, the Earnings to cover Fixed Charges were deficient by $127,319,000.