EXHIBIT 12

                                              AEP TEXAS NORTH COMPANY
                                Computation of Ratios of Earnings to Fixed Charges
                                         (in thousands except ratio data)



                                                                                                  Twelve
                                                                                                  Months
                                                             Year Ended December 31,              Ended
                                                             ----------------------
                                                  1998      1999      2000      2001     2002     3/31/03
                                                  ----      ----      ----      ----     ----     -------
                                                                               
Earnings:
  Net Income Before Extraordinary Item and
   Cumulative Effect of Accounting Change       $37,725   $31,867   $27,450   $12,310  $(13,677)  $(10,904)
  Plus Federal Income Taxes                      28,088     4,187     5,315    16,760     2,806      7,681
  Plus State Income Taxes                          -         -         -        1,973    (1,363)       398
  Plus Provision for Deferred Income Taxes       (6,626)   12,025     9,401   (11,891)  (12,275)   (16,060)
  Plus Deferred Investment Tax Credits           (1,321)   (1,274)   (1,271)   (1,271)   (1,271)    (1,333)
  Plus Fixed Charges (as below)                  24,932    25,083    24,923    24,916    21,885     21,264
                                                -------   -------   -------   -------  ---------  --------
     Total Earnings                             $82,798   $71,888   $65,818   $42,797  $ (3,895)  $  1,046

Fixed Charges:
  Interest on Long-term Debt                    $20,352   $20,352   $18,017   $16,842   $17,174    $17,215*
  Interest on Short-term Debt                     4,580     4,731     6,503     7,563     4,051      3,389*
  Estimated Interest Element in Lease Rentals      -         -          403       511       660        660
                                                -------   -------   -------   -------   -------    -------
     Total Fixed Charges                        $24,932   $25,083   $24,923   $24,916   $21,885    $21,264

Ratio of Earnings to Fixed Charges                 3.32      2.86      2.64      1.71     (0.17)      0.04

* Certain amounts have been reclassified between interest on short-term and
long-term debt compared to periods prior to January 1, 2002. This
reclassification had no affect on the ratio.