EX-12 3 ex12apco2q.htm COMPUTATION OF RATIOS ex12apco2q.htm
EXHIBIT 12
 
 
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
       
Twelve 
  
Six
  
       
Months 
  
Months
  
   
Year Ended December 31,
  
Ended
  
Ended
  
   
2003
  
2004
  
2005
  
2006
    
 2007
  
6/30/2008
  
6/30/2008
  
EARNINGS
                                        
Income Before Income Taxes
  
$
308,003
  
$
238,226
  
$
202,021
  
$
282,865
   $
 195,613
   $
 198,457
   $ 116,587  
Fixed Charges (as below)     123,721     110,735     118,365     151,874    
 178,067
     193,492     98,844  
Total Earnings
  
$
431,724
  
$
348,961
  
$
320,386
  
$
434,739
   $
373,680
   $ 391,949   $ 215,431  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
115,202
  
$
99,135
  
$
106,301
  
$
129,106
   $
165,405
   $ 179,886   $ 91,259  
Credit for Allowance for Borrowed Funds Used
   During Construction
     5,319     8,100     8,764     17,668    
 6,962
     7,906     4,735  
Estimated Interest Element in Lease Rentals     3,200     3,500     3,300     5,100    
 5,700
     5,700     2,850  
Total Fixed Charges
  
$
123,721
  
$
110,735
  
$
118,365
  
$
151,874
   $
 178,067
   $ 193,492   $ 98,844  
                                             
Ratio of Earnings to Fixed Charges
    
3.48
    
3.15
    
2.70
    
2.86
    
 2.09
     2.02     2.17