EX-12 7 x12apco.htm COMPUTATION OF RATIOS Computation of Ratios
EXHIBIT 12
 
 
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
   
Year Ended December 31,
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
EARNINGS
                           
Income Before Income Taxes
  
$
258,541
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
  
Fixed Charges (as below)     130,293     126,797     123,721     110,547     118,365  
Total Earnings
  
$
388,834
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
120,036
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
  
Credit for Allowance for Borrowed Funds Used
   During Construction
     4,457     5,620     5,319     8,100     8,764  
Interest Rate Hedges      -     -     -     (188 )    -   
Estimated Interest Element in Lease Rentals     5,800     4,500     3,200     3,500     3,300  
Total Fixed Charges
  
$
130,293
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
  
                                 
Ratio of Earnings to Fixed Charges
    
2.98
    
3.49
    
3.48
    
3.15
    
2.70