EX-12 6 ex12aeptexas20183q.htm COMPUTATION OF RATIOS - AEP TEXAS Exhibit


EXHIBIT 12
 
 
AEP TEXAS INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
Twelve
 
Nine
 
 
 
 
 
 
 
 
 
 
 
 
Months
 
Months
 
 
Years Ended December 31,
 
Ended 
 
Ended
 
 
2013
 
2014
 
2015
 
2016
 
2017
 
9/30/2018
 
9/30/2018
EARNINGS
 
 

 
 

 
 
 
 
 
 

 
 

 
 

Income From Continuing Operations Before Income Tax Expense
 
$
222.3

(a)
$
205.5

(b)
$
179.9

(b)
$
255.3

(b)
$
287.1

 
$
243.8

 
$
177.5

Fixed Charges (as below)
 
166.4

 
160.0

 
157.7

 
155.6

 
153.4

 
166.6

 
125.9

Total Earnings
 
$
388.7

 
$
365.5

 
$
337.6

 
$
410.9

 
$
440.5

 
$
410.4

 
$
303.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
161.8

 
$
153.8

 
$
150.0

 
$
145.8

 
$
142.3

 
$
145.6

 
$
108.9

Credit for Allowance for Borrowed Funds Used During Construction
 
2.2

 
3.6

 
4.5

 
5.9

 
6.8

 
16.7

 
13.8

Estimated Interest Element in Lease Rentals
 
2.4

 
2.6

 
3.2

 
3.9

 
4.3

 
4.3

 
3.2

Total Fixed Charges
 
$
166.4

 
$
160.0

 
$
157.7

 
$
155.6

 
$
153.4

 
$
166.6

 
$
125.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.33

 
2.28

 
2.14

 
2.64

 
2.87

 
2.46

 
2.40


(a)
Reflects the reclassification of the Wind Farms and AEP Energy Partners, Inc. as Discontinued Operations.
(b)
Reflects the reclassification of the Wind Farms as Discontinued Operations. See Note 7 to the Annual Financial Statements for additional information.