EX-12 10 ex12aeptexas20174q.htm COMPUTATION OF RATIOS - AEP TEXAS Exhibit


EXHIBIT 12 


AEP TEXAS INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
 
Years Ended December 31,
 
 
2013
 
 
2014
 
 
2015
 
 
2016
 
 
2017
EARNINGS
 
 

 
 
 

 
 
 
 
 
 
 
 
 

Income From Continuing Operations Before Income Tax Expense
 
$
222.3

(a)
 
$
205.5

(b)
 
$
179.9

(b)
 
$
255.3

(b)
 
$
287.1

Fixed Charges (as below)
 
166.4

 
 
160.0

 
 
157.7

 
 
155.6

 
 
153.4

Total Earnings
 
$
388.7

 
 
$
365.5

 
 
$
337.6

 
 
$
410.9

 
 
$
440.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
161.8

 
 
$
153.8

 
 
$
150.0

 
 
$
145.8

 
 
$
142.3

Credit for Allowance for Borrowed Funds Used During Construction
 
2.2

 
 
3.6

 
 
4.5

 
 
5.9

 
 
6.8

Estimated Interest Element in Lease Rentals
 
2.4

 
 
2.6

 
 
3.2

 
 
3.9

 
 
4.3

Total Fixed Charges
 
$
166.4

 
 
$
160.0

 
 
$
157.7

 
 
$
155.6

 
 
$
153.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.33

 
 
2.28

 
 
2.14

 
 
2.64

 
 
2.87


(a)
Reflects the reclassification of the Wind Farms and AEP Energy Partners, Inc. as Discontinued Operations.
(b)
Reflects the reclassification of the Wind Farms as Discontinued Operations. See Note 7.