EX-12 3 ex12aep1q.htm COMPUTATION OF RATIOS Unassociated Document
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data) 
 
   
Year Ended December 31,
    
Twelve Months Ended
    
Three Months Ended
  
   
2002
  
2003
  
2004
  
2005
  
2006
    
3/31/2007
    
3/31/2007
  
EARNINGS
                                       
Income Before Income Tax Expense, Minority
   Interest Expense and Equity Earnings 
  
$
814
  
$
 872  
$
1,684
  
$
1,453
  
$
1,477
  
 
$
 
1,307
  
 
$
 
397
  
Fixed Charges (as below)
    
1,048
    
1,050
    
989
    
916
    
1,002
    
1,031
 
  
261
  
Preference Security Dividend Requirements
   of Consolidated Subsidiaries
     (18 )   (15 )    (9 )   (10 )   (4 )  
 
(4
) 
  
 
(1
 
) 
Total Earnings
  
$
1,844
  
$
1,907
  
$
2,664
  
$
2,359
  
$
2,475
   $
2,334
   $
657
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
775
  
$
814
  
$
781
  
$
697
  
$
732
   $
750
   $
186
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
32
    
24
    
22
    
36
    
82
    
 
93
    
 
28
  
Estimated Interest Element in Lease Rentals     223     197     177     173     184    
184
    
46
  
Preference Security Dividend Requirements
   of Consolidated Subsidiaries
     18     15     9     10     4    
 
4
    
 
1
  
Total Fixed Charges
  
$
1,048
  
$
1,050
  
$
989
  
$
916
  
$
1,002
   $
1,031
   $
261
  
                                             
Ratio of Earnings to Fixed Charges
    
1.75
    
1.81
    
2.69
    
2.57
    
2.47
    
2.26
    
2.51