EX-12 2 ex12aep20161q.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)
 
 
 
 
 
 
 
 
 
 
 
 
Twelve
 
Three
 
 
 
 
 
 
 
 
 
 
 
 
Months
 
Months
 
 
Years Ended December 31,
 
Ended 
 
Ended
 
 
2011
 
2012
 
2013
 
2014
 
2015
 
3/31/2016
 
3/31/2016
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

 
$
2,412.9

 
$
713.6

Income Distributed from Equity Method Investment
 
—

 
—

 
—

 
22.6

 
18.0

 
20.2

 
2.2

Fixed Charges (as below)
 
1,209.0

 
1,257.5

 
1,135.4

 
1,104.7

 
1,099.3

 
1,095.5

 
269.9

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

 
$
3,528.6

 
$
985.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
933.1

 
$
988.4

 
$
905.6

 
$
885.1

 
$
890.9

 
$
884.9

 
$
217.0

Credit for Allowance for Borrowed Funds Used During Construction
 
62.6

 
68.9

 
39.8

 
44.5

 
61.3

 
63.5

 
16.1

Estimated Interest Element in Lease Rentals
 
205.3

 
200.2

 
190.0

 
175.1

 
147.1

 
147.1

 
36.8

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

 
$
1,095.5

 
$
269.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.89

 
2.43

 
2.84

 
3.19

 
3.40

 
3.22

 
3.65


(a) All prior periods presented reflect the reclassification of AEP River Operations as Discontinued Operations. See “AEPRO (Corporate and
Other)” section of Note 6 to the Financial Statements for additional information.