EX-12 8 ex12aep4q.htm COMPUTATION OF RATIOS - AEP ex12aep4q


EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
 
Years Ended December 31,
 
 
2010
 
2011
 
2012
 
2013
 
2014
EARNINGS
 
 

 
 

 
 

 
 

 
 

Income Before Income Tax Expense and Equity Earnings
 
$
1,849

 
$
2,367

 
$
1,822

 
$
2,110

 
$
2,490

Income Distributed from Equity Method Investment
 
—

 
—

 
—

 
—

 
23

Fixed Charges (as below)
 
1,254

 
1,209

 
1,257

 
1,136

 
1,104

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
(4
)
 
(8
)
 
—

 
—

 
—

Total Earnings
 
$
3,099

 
$
3,568

 
$
3,079

 
$
3,246

 
$
3,617

 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 

 
 
 
 
 
 
 
 
Interest Expense
 
$
999

 
$
933

 
$
988

 
$
906

 
$
885

Credit for Allowance for Borrowed Funds Used
   During Construction
 
53

 
63

 
69

 
40

 
44

Estimated Interest Element in Lease Rentals
 
198

 
205

 
200

 
190

 
175

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
4

 
8

 
—

 
—

 
—

Total Fixed Charges
 
$
1,254

 
$
1,209

 
$
1,257

 
$
1,136

 
$
1,104

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.47

 
2.95

 
2.44

 
2.85

 
3.27