EX-12 3 tncex12.htm EXHIBIT 12 Unassociated Document

 
EXHIBIT 12
 
 
AEP TEXAS NORTH COMPANY
Computation of Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
   
Year Ended December 31,
 
Twelve
Months
Ended
 
   
2000
 
2001
 
2002
 
2003
 
2004
 
3/31/2005
 
 FIXED CHARGES
                         
  Interest on Long-term Debt    $ 18,017     $ 16,842     $ 17,174     $ 21,627     $ 21,274     $ 20,673   
  Interest on Short-term Debt     6,503      7,563      4,051      790      929      296   
  Estimated Interest Element in Lease Rentals     403      511      660      719      513      513   
                                       
     Total Fixed Charges    $ 24,923     $ 24,916     $ 21,885     $ 23,136     $ 22,716     $ 21,482   
                                       
 EARNINGS
                                     
  Net Income Before Extraordinary Item and
    Cumulative Effect of Accounting Change
 
$
27,450
 
$
12,310
 
$
(13,677
$
55,663
 
$
47,659
 
$
41,957
 
  Plus Federal Income Taxes
   
5,315
   
16,760
   
2,806
   
31,425
   
17,351
   
15,594
 
  Plus State Income Taxes
   
-
   
1,973
   
(1,363
 
3,851
 
 
2,215
   
2,102
 
  Plus Provision for Deferred Income Taxes
   
9,401
   
(11,891
 
(12,275
)
 
(3,493
)
 
4,237
 
 
3,015
 
  Plus Deferred Investment Tax Credits
   
(1,271
)
 
(1,271
)
 
(1,271
)
 
(1,520
)
 
(1,292
)
 
(1,271
)
  Plus Fixed Charges (as above)
   
24,923
   
24,916
   
21,885
   
23,136
   
22,716
   
21,482
 
                                       
     Total Earnings
 
$
65,818
 
$
42,797
 
$
(3,895
$
109,062
 
$
92,886
 
$
82,879
 
                                       
Ratio of Earnings to Fixed Charges
   
2.64
   
1.71
   
(0.17
 
4.71
 
 
4.08
   
3.85
 
 
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.
 
For the year ended December 31, 2002, the Earnings to cover Fixed Charges was deficient by $25,780,000.