EX-12 4 ex12im3q.htm COMPUTATION OF RATIOS - I&M ex12im3q


EXHIBIT 12
 
 
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
Twelve
 
Nine
 
 
 
 
 
 
 
 
 
 
 
 
Months
 
Months
 
 
Years Ended December 31,
 
Ended 
 
Ended
 
 
2009
 
2010
 
2011
 
2012
 
2013
 
9/30/2014
 
9/30/2014
EARNINGS
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Income Before Income Taxes
 
$
297,347

 
$
189,517

 
$
201,434

 
$
157,801

 
$
252,615

 
$
254,067

 
$
212,645

Fixed Charges (as below)
 
173,293

 
174,965

 
168,003

 
168,656

 
167,362

 
165,274

 
123,014

Total Earnings
 
$
470,640

 
$
364,482

 
$
369,437

 
$
326,457

 
$
419,977

 
$
419,341

 
$
335,659

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
101,145

 
$
104,465

 
$
97,665

 
$
102,739

 
$
97,710

 
$
97,086

 
$
71,955

Credit for Allowance for Borrowed Funds
   Used During Construction
 
8,348

 
8,500

 
7,838

 
4,717

 
9,752

 
8,288

 
6,134

Estimated Interest Element in Lease Rentals
 
63,800

 
62,000

 
62,500

 
61,200

 
59,900

 
59,900

 
44,925

Total Fixed Charges
 
$
173,293

 
$
174,965

 
$
168,003

 
$
168,656

 
$
167,362

 
$
165,274

 
$
123,014

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.71

 
2.08

 
2.19

 
1.93

 
2.50

 
2.53

 
2.72