EX-12 3 ex12tcc3q.htm COMPUTATION OF RATIOS Computation of Ratios
EXHIBIT 12
 
 
AEP TEXAS CENTRAL COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
 
   
Year Ended December 31,
  
Twelve
Months
Ended
    
Nine
Months
Ended
  
 
 
2001
 
2002
 
2003
 
2004
 
2005
 
9/30/2006
 
 
 9/30/2006
  
EARNINGS
                                            
Income Before Income Taxes
  
$
293,425
  
$
418,107
  
$
322,719
  
$
429,714
  
$
63,213
  
$
20,985
   $
 55,791
  
Fixed Charges (as below)
    
125,194
    
132,237
    
136,143
    
125,701
    
115,439
    
124,470
    
 96,463
  
Total Earnings
  
$
418,619
  
$
550,344
  
$
458,862
  
$
555,415
  
$
178,652
  
$
145,455
   $
 152,254
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
116,268
  
$
125,871
  
$
133,812
  
$
123,785
  
$
112,006
  
$
120,312
   $
 93,401
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
6,943
    
4,620
    
567
    
750
    
1,508
    
2,233
    
 1,618
  
Trust Dividends     -     (649 )   (372 )   (216 )   -     -    
 -
  
Estimated Interest Element in Lease
   Rentals 
    
1,983
    
2,395
    
2,136
    
1,382
    
1,925
    
1,925
    
 1,444
  
Total Fixed Charges
  
$
125,194
  
$
132,237
  
$
136,143
  
$
125,701
  
$
115,439
  
$
124,470
   $
 96,463
  
                                             
Ratio of Earnings to Fixed Charges
    
3.34
    
4.16
    
3.37
    
4.41
    
1.54
    
1.16
    
 1.57