EX-12 4 x12tnc.htm COMPUTATION OF RATIOS Computation of Ratios

EXHIBIT 12
 
 
AEP TEXAS NORTH COMPANY 
Computation of Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
   
Year Ended December 31,
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
EARNINGS (LOSS)
                           
Income (Loss) Before Income Taxes
  
$
17,881
  
$
(25,780
 )
$
85,926
  
$
70,168
  
$
60,053
  
Fixed Charges (as below)
    
24,916
    
21,884
    
23,135
    
22,715
    
20,987
  
Total Earnings (Loss)
  
$
42,797
  
$
(3,896
 )
$
109,061
  
$
92,883
  
$
81,040
  
                                 
FIXED CHARGES
                                
Interest Expense
   $
23,275
   $
20,845
   $
22,049
   $
21,985
   $
19,817
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
1,130
    
379
    
367
 
  
217
    
378
  
Estimated Interest Element in Lease Rentals 
    
511
    
660
 
  
719
 
  
513
 
  
792
  
Total Fixed Charges
  
$
24,916
  
$
21,884
  
$
23,135
 
$
22,715
  
$
20,987
  
                                 
Ratio of Earnings (Loss) to Fixed Charges
    
1.71
    
(0.17
 )   
4.71
 
  
4.08
    
3.86
  
                                 
 
For the year ended December 31, 2002, the Earnings to cover Fixed Charges was deficient by $25,780,000.