EX-12 3 ex12tnc1q.htm COMPUTATION OF RATIOS Unassociated Document

EXHIBIT 12
 
 
AEP TEXAS NORTH COMPANY AND SUBSIDIARY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
         
Twelve
    
Three
  
         
Months
   
Months
  
   
Year Ended December 31,
    
Ended
    
Ended
  
   
2002
  
2003
  
2004
  
2005
  
2006
      3/31/2007    
3/31/2007
  
EARNINGS (LOSS)
                                       
Income (Loss) Before Income Taxes
  
$
(25,780
 ) 
$
85,926
  
$
70,168
  
$
60,053
  
$
19,197
   $
 21,830
   $
 7,507
  
Fixed Charges (as below)
    
21,884
    
23,135
    
22,715
    
20,987
    
19,206
    
 19,202
    
 4,800
  
Total Earnings (Loss)
  
$
(3,896
 ) 
$
109,061
  
$
92,883
  
$
81,040
  
$
38,403
   $
 41,032
   $
 12,307
  
                                             
FIXED CHARGES
                                            
Interest Expense
   $
20,845
   $
22,049
   $
21,985
   $
19,817
   $
17,619
   $
 17,603
   $
 4,346
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
379
    
367
    
217
 
  
378
    
568
    
 580
    
199
  
Estimated Interest Element in Lease Rentals 
    
660
    
719
 
  
513
 
  
792
 
  
1,019
    
 1,019
    
 255
  
Total Fixed Charges
  
$
21,884
  
$
23,135
  
$
22,715
 
$
20,987
  
$
19,206
   $
 19,202
   $
 4,800
  
                                             
Ratio of Earnings (Loss) to Fixed Charges
    
(0.17
 )  
4.71
    
4.08
 
  
3.86
    
1.99
    
 2.13
    
 2.56
  
                                             
 
For the year ended December 31, 2002, the Earnings to cover Fixed Charges was deficient by $25,780,000.