EX-12 3 ex12tcc2q.htm COMPUTATION OF RATIOS Computation of Ratios
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
    
Six
Months
Ended
  
 
 
2001
 
2002
 
2003
 
2004
 
2005
 
6/30/2006
 
 
 6/30/2006
  
EARNINGS
                                            
Income Before Income Taxes
  
$
293,425
  
$
418,107
  
$
322,719
  
$
429,714
  
$
63,213
  
$
56,900
   $
 30,096
  
Fixed Charges (as below)
    
125,194
    
132,237
    
136,143
    
125,701
    
115,439
    
112,762
    
 58,501
  
Total Earnings
  
$
418,619
  
$
550,344
  
$
458,862
  
$
555,415
  
$
178,652
  
$
169,662
   $
 88,597
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
116,268
  
$
125,871
  
$
133,812
  
$
123,785
  
$
112,006
  
$
108,940
   $
 56,655
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
6,943
    
4,620
    
567
    
750
    
1,508
    
1,897
    
 883
  
Trust Dividends     -     (649 )   (372 )   (216 )   -     -    
 -
  
Estimated Interest Element in Lease
   Rentals 
    
1,983
    
2,395
    
2,136
    
1,382
    
1,925
    
1,925
    
 963
  
Total Fixed Charges
  
$
125,194
  
$
132,237
  
$
136,143
  
$
125,701
  
$
115,439
  
$
112,762
   $
 58,501
  
                                             
Ratio of Earnings to Fixed Charges
    
3.34
    
4.16
    
3.37
    
4.41
    
1.54
    
1.50
    
 1.51