EX-12 3 im12.txt I&M 6/30/01 EXHIBIT 12 INDIANA MICHIGAN POWER COMPANY Computation of Consolidated Ratio of Earnings to Fixed Charges (in thousands except ratio data)
Twelve Months Year Ended December 31, Ended ---------------------------------------------------- 1996 1997 1998 1999 2000 6/30/01 ---- ---- ---- ---- ---- ------- Fixed Charges: Interest on First Mortgage Bonds. . . . . . . $ 41,209 $ 39,678 $ 35,910 $ 31,442 $ 24,154 $ 23,357 Interest on Other Long-term Debt. . . . . . . 20,100 21,064 27,457 38,623 55,977 58,365 Interest on Short-term Debt . . . . . . . . . 2,982 3,248 4,903 9,207 19,263 16,357 Miscellaneous Interest Charges. . . . . . . . 3,262 3,187 3,113 6,754 20,356 21,288 Estimated Interest Element in Lease Rentals . 82,600 79,700 79,300 73,800 74,100 74,100 -------- -------- -------- -------- -------- -------- Total Fixed Charges. . . . . . . . . . . $150,153 $146,877 $150,683 $159,826 $193,850 $193,467 ======== ======== ======== ======== ======== ======== Earnings: Net Income (Loss) . . . . . . . . . . . . . . $157,153 $146,740 $ 96,628 $ 32,776 $(132,032) $ 3,439 Plus Federal Income Taxes . . . . . . . . . . 76,899 74,223 47,210 18,866 (4,524) 67,195 Plus State Income Taxes . . . . . . . . . . . 9,270 7,519 4,938 (7,352) 9,237 13,467 Plus Fixed Charges (as above) . . . . . . . . 150,153 146,877 150,683 159,826 193,850 193,467 -------- -------- -------- -------- --------- -------- Total Earnings . . . . . . . . . . . . . $393,475 $375,359 $299,459 $204,116 $ 66,531 $277,568 ======== ======== ======== ======== ========= ======== Ratio of Earnings to Fixed Charges. . . . . . . 2.62 2.55 1.98 1.27 0.34 1.43 ==== ==== ==== ==== ==== ====