EX-12 3 ex12apco2q.htm COMPUTATION OF RATIOS Unassociated Document
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
  
   
2004
  
2005
  
2006
  
2007
    
 2008
  
6/30/2009
  
6/30/2009
  
EARNINGS
                                        
Income Before Income Taxes
  
$
238,226
  
$
202,021
  
$
282,865
  
$
195,613
   $ 166,801   $ 203,005   $ 152,791  
Fixed Charges (as below)     110,735     118,365     151,874     178,067     225,573     234,307     108,128  
Total Earnings
  
$
348,961
  
$
320,386
  
$
434,739
  
$
373,680
   $ 392,374   $ 437,312   $ 260,919  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
99,135
  
$
106,301
  
$
129,106
  
$
165,405
   $ 209,733   $ 219,636   $ 101,162  
Credit for Allowance for Borrowed Funds Used
   During Construction
     8,100     8,764     17,668     6,962     9,040     7,871     3,566  
Estimated Interest Element in Lease Rentals     3,500     3,300     5,100     5,700    
6,800
     6,800     3,400  
Total Fixed Charges
  
$
110,735
  
$
118,365
  
$
151,874
  
$
178,067
   $ 225,573   $ 234,307   $ 108,128  
                                             
Ratio of Earnings to Fixed Charges
    
3.15
    
2.70
    
2.86
    
2.09
     1.73     1.86     2.41