EX-12 4 ex12tnc4q.htm COMPUTATION OF RATIOS Computation of Ratios

EXHIBIT 12
 
 
AEP TEXAS NORTH COMPANY AND SUBSIDIARY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
   
Year Ended December 31,
  
   
2002
  
2003
  
2004
  
2005
  
2006
  
EARNINGS (LOSS)
                           
Income (Loss) Before Income Taxes
  
$
(25,780
 ) 
$
85,926
  
$
70,168
  
$
60,053
  
$
19,197
  
Fixed Charges (as below)
    
21,884
    
23,135
    
22,715
    
20,987
    
19,206
  
Total Earnings (Loss)
  
$
(3,896
 ) 
$
109,061
  
$
92,883
  
$
81,040
  
$
38,403
  
                                 
FIXED CHARGES
                                
Interest Expense
   $
20,845
   $
22,049
   $
21,985
   $
19,817
   $
17,619
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
379
    
367
    
217
 
  
378
    
568
  
Estimated Interest Element in Lease Rentals 
    
660
    
719
 
  
513
 
  
792
 
  
1,019
  
Total Fixed Charges
  
$
21,884
  
$
23,135
  
$
22,715
 
$
20,987
  
$
19,206
  
                                 
Ratio of Earnings (Loss) to Fixed Charges
    
(0.17
 )  
4.71
    
4.08
 
  
3.86
    
1.99
  
                                 
 
For the year ended December 31, 2002, the Earnings to cover Fixed Charges was deficient by $25,780,000.