EX-12 2 ex12aep4q.htm COMPUTATION OF RATIOS ex12aep4q.htm
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,
  
   
2004
  
2005
  
2006
  
2007
    2008  
EARNINGS
                          
Income Before Income Tax Expense and Equity Earnings 
  
$
 1,692  
$
1,463
  
$
1,483
  
$
1,663
   $  2,015  
Fixed Charges (as below)
    
987
    
913
    
999
    
1,146
     1,240  
Preferred Security Dividend Requirements of Consolidated
   Subsidiaries
      (9 )     (10 )     (4 )     (4 )     (4 ) 
Total Earnings
  
$
2,670
  
$
2,366
  
$
2,478
  
$
2,805
   $  3,251  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
779
  
$
694
  
$
729
  
$
838
   $  957  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
22
    
36
    
82
    
79
     75  
Estimated Interest Element in Lease Rentals     177     173     184     225     204  
Preferred Security Dividend Requirements of Consolidated
   Subsidiaries
      9      10      4      4     4  
Total Fixed Charges
  
$
987
  
$
913
  
$
999
  
$
1,146
   $  1,240  
                                 
Ratio of Earnings to Fixed Charges
    
2.70
    
2.59
    
2.48
    
2.44
     2.62