EX-12 3 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,        
  
  Twelve Months Ended
  
 
 
2001 
  
2002 
  
2003 
  
2004 
  
2005 
  
  3/31/06
  
EARNINGS
                                     
Income Before Income Taxes
  
$
258,541
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
   $ 248,633  
Fixed Charges (as below)
    
130,293
    
126,797
    
123,721
    
110,547
    
118,365
     125,561  
Total Earnings
  
$
388,834
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
   $ 374,194  
                                       
FIXED CHARGES
                                      
Interest Expense
  
$
120,036
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
   $ 112,370  
Credit for Allowance for Borrowed Funds Used
  During Construction
    
4,457
    
5,620
    
5,319
    
8,100
    
8,764
     9,891  
Interest Rate Hedges
    
-
    
-
    
-
    
(188
)
  
-
    -  
Estimated Interest Element in Lease Rentals
    
5,800
    
4,500
    
3,200
    
3,500
    
3,300
     3,300  
Total Fixed Charges
  
$
130,293
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
   $ 125,561  
                                       
Ratio of Earnings to Fixed Charges
    
2.98
    
3.49
    
3.48
    
3.15
    
2.70
     2.98