EX-12 3 ex12aep20154q.htm COMPUTATION OF RATIOS - AEP Exhibit


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,
 
 
2011
 
2012
 
2013
 
2014
 
2015
EARNINGS
 
 

 
 

 
 

 
 

 
 

Income From Continuing Operations Before Income Tax Expense and Equity Earnings (a)
 
$
2,297.7

 
$
1,801.1

 
$
2,093.3

 
$
2,402.9

 
$
2,622.9

Income Distributed from Equity Method Investment
 
—

 
—

 
—

 
22.6

 
18.0

Fixed Charges (as below)
 
1,209.0

 
1,257.5

 
1,135.4

 
1,104.7

 
1,099.3

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
(8.0
)
 
—

 
—

 
—

 
—

Total Earnings
 
$
3,498.7

 
$
3,058.6

 
$
3,228.7

 
$
3,530.2

 
$
3,740.2

 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 

 
 
 
 
 
 
 
 
Interest Expense
 
$
933.1

 
$
988.4

 
$
905.6

 
$
885.1

 
$
890.9

Credit for Allowance for Borrowed Funds Used
   During Construction
 
62.6

 
68.9

 
39.8

 
44.5

 
61.3

Estimated Interest Element in Lease Rentals
 
205.3

 
200.2

 
190.0

 
175.1

 
147.1

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
8.0

 
—

 
—

 
—

 
—

Total Fixed Charges
 
$
1,209.0

 
$
1,257.5

 
$
1,135.4

 
$
1,104.7

 
$
1,099.3

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (a)
 
2.89

 
2.43

 
2.84

 
3.19

 
3.40


(a) All periods presented reflect the reclassification of AEP River Operations as Discontinued Operations. See “AEPRO (AEP River Operations Segment)” section of Note 7 to the Financial Statements for additional information.