EX-12 3 ex12aep2q.htm COMPUTATION OF RATIOS - AEP Unassociated Document
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
        Twelve     Six  
        Months     Months   
   
Years Ended December 31,
   Ended     Ended  
   
2007
  
2008
  
2009
    2010      2011    6/30/2012     6/30/2012  
EARNINGS
                                          
Income Before Income Tax Expense and Equity Earnings
  
$
1,663
  
$
2,015
  
$
1,938
  
$
1,849
   $ 
2,367
   $  2,332   $  1,113  
Fixed Charges (as below)
    
1,146
    
1,240
    
1,237
    
1,254
    
1,209
     1,195     602  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      (4 )     (4 )     (4 )    (4 )   
(8
 )    (6 )    -  
Total Earnings
  
$
2,805
  
$
3,251
   $
3,171
  
$
3,099
   $ 
3,568
   $  3,521   $  1,715  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
838
  
$
957
   $ 973  
$
 999   $  933   $  916   $  464  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
79
    
75
     67     53     63     68     35  
Estimated Interest Element in Lease Rentals     225     204     193     198     205     205     103  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      4      4      4      4     8     6     -  
Total Fixed Charges
  
$
1,146
  
$
1,240
   $
1,237
  
$
1,254
   $  1,209   $  1,195   $  602  
                                             
Ratio of Earnings to Fixed Charges
    
2.44
    
2.62
    
2.56
    
2.47
     2.95     2.94     2.84