EX-12 5 ex12im3q.htm COMPUTATION OF RATIOS - I&M Unassociated Document
EXHIBIT 12
 
 
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
 
        Twelve   Nine  
        Months    Months   
    Years Ended December 31,   Ended     Ended  
   
2007
    
2008
     2009    2010     2011    9/30/2012   9/30/2012  
EARNINGS
                                           
Income Before Income Taxes
  
$
204,394
  
$
 190,133   $ 297,347   $ 189,517   $  201,434   $  156,911   $  154,040  
Fixed Charges (as below)
    
161,849
     164,660     173,293     174,965     168,003     168,653     127,006  
Total Earnings
  
$
366,243
   $ 354,793   $ 470,640   $ 364,482   $  369,437   $  325,564     281,046  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
80,034
   $ 89,851   $ 101,145   $ 104,465   $  97,665     100,958     76,733  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
5,315
     4,609     8,348     8,500     7,838     5,195     3,398  
Estimated Interest Element in Lease Rentals     76,500     70,200     63,800     62,000     62,500     62,500     46,875  
Total Fixed Charges
  
$
161,849
   $ 164,660   $ 173,293   $ 174,965   $  168,003     168,653     127,006  
                                             
Ratio of Earnings to Fixed Charges
    
2.26
     2.15     2.71     2.08     2.19     1.93     2.21