EX-12 3 ex12im.htm EXHIBIT 12 Unassociated Document

 
EXHIBIT 12
 
 
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)
 
   
Year Ended December 31,
  
Twelve
Months
Ended
  
   
2000
  
2001
  
2002
  
2003
  
2004
  
6/30/05
  
FIXED CHARGES
                          
  Interest on First Mortgage Bonds
  
$
24,154
  
$
21,647
  
$
19,458
  
$
8,655
  
$
1,009
  
$
-
  
  Interest on Other Long-term Debt
    
55,977
    
56,597
    
71,837
    
71,110
    
60,448
    
56,972
  
  Interest on Short-term Debt
    
19,263
    
13,088
    
439
    
1,200
    
2,901
    
3,111
  
  Miscellaneous Interest Charges
    
20,356
    
3,929
    
4,961
    
5,242
    
6,463
    
7,032
  
  Estimated Interest Element in Lease Rentals
    
74,100
    
74,000
    
72,800
    
70,300
    
68,600
    
68,600
  
                                       
     Total Fixed Charges
  
$
193,850
  
$
169,261
  
$
169,495
  
$
156,507
  
$
139,421
  
$
135,715
  
                                       
EARNINGS
                                      
  Net Income (Loss) Before Cumulative Effect of
    Accounting Change
  
$
(132,032
 ) 
$
75,788
 
$
73,992
  
$
89,548
  
$
133,222
  
$
138,446
  
  Plus Federal Income Taxes (Credits)
    
(4,524
 )   
49,725
 
  
44,647
    
34,018
    
60,689
    
60,664
  
  Plus State Income Taxes
    
9,237
 
  
9,442
    
190
    
7,130
    
10,926
    
8,036
  
  Plus Fixed Charges (as above)
    
193,850
    
169,261
    
169,495
    
156,507
    
139,421
    
135,715
  
                                       
     Total Earnings
  
$
66,531
  
$
304,216
  
$
288,324
  
$
287,203
  
$
344,258
  
$
342,861
  
                                       
Ratio of Earnings to Fixed Charges
    
0.34
    
1.79
    
1.70
    
1.83
    
2.46
    
2.52
  
 
For the year ended December 31, 2000, the Earnings to cover Fixed Charges were deficient by $127,319,000.