EX-12 7 x12aep.htm COMPUTATION OF RATIOS Exhibit 12 Computation of Ratios
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data) 
 
   
Year Ended December 31,
  
   
2001
  
2002
  
2003
  
2004
  
2005
  
EARNINGS
                           
Income Before Income Tax Expense,
   Minority Interest Expense and Equity Earnings 
  
$
1,481
  
$
 814  
$
872
  
$
1,684
  
$
1,453
  
Fixed Charges (as below)
    
1,103
    
1,048
    
1,050
    
989
    
916
  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     (15 )   (18 )    (15 )   (9 )   (10 )
Total Earnings
  
$
2,569
  
$
1,844
  
$
1,907
  
$
2,664
  
$
2,359
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
833
  
$
775
  
$
814
  
$
781
  
$
697
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
42
    
32
    
24
    
22
    
36
  
Estimated Interest Element in Lease Rentals     213     223     197     177     173  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     15     18     15     9     10  
Total Fixed Charges
  
$
1,103
  
$
1,048
  
$
1,050
  
$
989
  
$
916
  
                                 
Ratio of Earnings to Fixed Charges
    
2.32
    
1.75
    
1.81
    
2.69
    
2.57