EX-12 3 ex12tnc2q.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,
  
Twelve
Months
Ended
    
Six
Months
Ended
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
6/30/2006
    
6/30/2006
  
EARNINGS (LOSS)
                                            
Income (Loss) Before Income Taxes
  
$
17,881
  
$
(25,780
 )
$
85,926
  
$
70,168
  
$
60,053
  
$
33,671
   $
 769
  
Fixed Charges (as below)
    
24,916
    
21,884
    
23,135
    
22,715
    
20,987
    
20,124
    
 9,509
  
Total Earnings (Loss)
  
$
42,797
  
$
(3,896
 )
$
109,061
  
$
92,883
  
$
81,040
  
$
53,795
   $
 10,278
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
23,275
  
$
20,845
  
$
22,049
  
$
21,985
  
$
19,817
  
$
18,843
   $
 8,879
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
1,130
    
379
    
367
    
217
    
378
    
489
    
 234
  
Estimated Interest Element in Lease
   Rentals 
    
511
    
660
    
719
    
513
    
792
    
792
    
 396
  
Total Fixed Charges
  
$
24,916
  
$
21,884
  
$
23,135
  
$
22,715
  
$
20,987
  
$
20,124
   $
 9,509
  
                                             
Ratio of Earnings (Loss) to Fixed
   Charges
    
1.71
    
(0.17
 )  
4.71
    
4.08
    
3.86
    
2.67
    
 1.08
  

For the year ended December 31, 2002, the Earnings to cover Fixed Charges was deficient by $25,780,000.