EX-12 10 ex12aep4q.htm COMPUTATION OF RATIOS 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,
  
   
2002
  
2003
  
2004
  
2005
  
2006
  
EARNINGS
                           
Income Before Income Tax Expense,
   Minority Interest Expense and Equity Earnings 
  
$
814
  
$
 872  
$
1,684
  
$
1,453
  
$
1,477
  
Fixed Charges (as below)
    
1,048
    
1,050
    
989
    
916
    
1,002
  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     (18 )   (15 )    (9 )   (10 )   (4 )
Total Earnings
  
$
1,844
  
$
1,907
  
$
2,664
  
$
2,359
  
$
2,475
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
775
  
$
814
  
$
781
  
$
697
  
$
732
  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
32
    
24
    
22
    
36
    
82
  
Estimated Interest Element in Lease Rentals     223     197     177     173     184  
Preference Security Dividend Requirements of
   Consolidated Subsidiaries
     18     15     9     10     4  
Total Fixed Charges
  
$
1,048
  
$
1,050
  
$
989
  
$
916
  
$
1,002
  
                                 
Ratio of Earnings to Fixed Charges
    
1.75
    
1.81
    
2.69
    
2.57
    
2.47