EX-12 3 ex12aep1q.htm COMPUTATION OF RATIOS Unassociated Document
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data) 
 
        Twelve   Three  
        Months   Months  
   
Year Ended December 31,
   Ended   Ended  
   
2003
  
2004
  
2005
  
2006
  
2007
  
3/31/2008
  
3/31/2008
  
EARNINGS
                                       
Income Before Income Tax Expense,
   Minority Interest Expense and Equity Earnings 
  
$
872
  
$
 1,684  
$
1,453
  
$
1,477
  
$
1,657
  
$
 2,125   $ 865  
Fixed Charges (as below)
    
1,050
    
989
    
916
    
1,002
    
1,149
     1,174     296  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     (15 )   (9 )    (10 )   (4 )   (4 )  
(4
 )   
(1
 ) 
Total Earnings
  
$
1,907
  
$
2,664
  
$
2,359
  
$
2,475
  
$
2,802
   $ 3,295   $ 1,160  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
814
  
$
781
  
$
697
  
$
732
  
$
841
   $ 875   $ 220  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
24
    
22
    
36
    
82
    
79
     70     19  
Estimated Interest Element in Lease Rentals     197     177     173     184     225     225     56  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     15     9     10     4     4     4     1  
Total Fixed Charges
  
$
1,050
  
$
989
  
$
916
  
$
1,002
  
$
1,149
   $ 1,174   $ 296  
                                             
Ratio of Earnings to Fixed Charges
    
1.81
    
2.69
    
2.57
    
2.47
    
2.43
     2.80     3.91