EX-12 3 ex12tcc.htm EXHIBIT 12 TEXAS CENTRAL COMPANY 3Q05 Unassociated Document

 
EXHIBIT 12
 
 
AEP TEXAS CENTRAL COMPANY AND SUBSIDIARY
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
 
   
Year Ended December 31,
  
Twelve
Months
Ended
  
   
2000
  
2001
  
2002
  
2003
  
2004
  
9/30/05
  
 FIXED CHARGES
                          
  Interest on Long-term Debt       $ 96,212    $ 86,980    $ 99,839    $ 122,866    $ 116,667    $ 100,646  
  Interest on Short-term Debt     22,830     25,023     19,442     5,877     7,652     14,698  
  Distributions on Trust Preferred Securities      11,940     11,208     10,560     5,264     -     -  
  Estimated Interest Element in Lease Rentals      1,803     1,983     2,395     2,136     1,382     1,382  
                                       
     Fixed Charges    $  132,785    $ 125,194    $ 132,236    $ 136,143    $ 125,701    $ 116,726  
                                       
 EARNINGS
                                      
  Net Income Before Extraordinary Item and
     Cumulative Effect of Accounting Change
  
$
189,567
  
$
182,278
  
$
275,941
  
$
217,547
  
$
294,656
  
$
292,562
  
  Plus Federal Income Taxes
    
80,797
    
172,722
    
30,102
    
90,868
    
113,463
    
68,208
  
  Plus State Income Taxes
    
3,532
    
14,849
    
3,616
    
118
    
9,840
    
809
 
  Plus Provision for Deferred Income Taxes
    
16,263
    
(72,568
 )   
113,655
 
  
19,393
    
16,492
    
74,176
 
  Plus Deferred Investment Tax Credits
    
(5,207
)
  
(5,207
)
  
(5,207
)
  
(5,207
)
  
(4,736
)
  
(3,266
)
  Plus Fixed Charges (as above)
    
132,785
    
125,194
    
132,236
    
136,143
    
125,701
    
116,726
  
                                       
     Total Earnings
  
$
417,737
  
$
417,268
  
$
550,343
  
$
458,862
  
$
555,416
  
$
549,215
  
                                       
Ratio of Earnings to Fixed Charges
    
3.14
    
3.33
    
4.16
    
3.37
    
4.41
    
4.70
  
 
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.
 
Certain amounts have been reclassified between Distributions on Trust Preferred Securities and Interest on Long-term Debt due to the implementation of FIN 46R "Consolidation of Variable Interest Entities" effective March 31, 2004, on  a prospective basis.  This reclassification had no effect on this ratio.