EX-12 2 ex12apco3q.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    Nine  
         Months    Months  
   
Year Ended December 31,
    Ended    Ended  
   
2005
  
2006
  
2007
    
 2008
  
2009
    9/30/2010    9/30/2010  
EARNINGS
                                         
Income Before Income Taxes
  
$
202,021
  
$
282,865
  
$
195,613
   $ 166,801   $ 201,263   $ 157,347   $ 149,256  
Fixed Charges (as below)     118,365     151,874     178,067     225,573     215,640     215,092     163,064  
Total Earnings
  
$
320,386
  
$
434,739
  
$
373,680
   $ 392,374   $ 416,903   $ 372,439   $ 312,320  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
106,301
  
$
129,106
  
$
165,405
   $ 209,733   $ 202,426   $ 205,574   $ 156,292  
Credit for Allowance for Borrowed Funds Used
   During Construction
     8,764     17,668     6,962     9,040     6,014     2,318     1,372  
Estimated Interest Element in Lease Rentals     3,300     5,100     5,700    
6,800
     7,200     7,200     5,400  
Total Fixed Charges
  
$
118,365
  
$
151,874
  
$
178,067
   $ 225,573   $ 215,640   $ 215,092   $ 163,064  
                                             
Ratio of Earnings to Fixed Charges
    
2.70
    
2.86
    
2.09
     1.73     1.93     1.73     1.91