EX-12 3 x12im.htm COMPUTATION OF RATIOS 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 
  
   
2001 
  
2002 
  
2003 
  
2004 
  
2005 
  
3/31/2006 
  
EARNINGS
                                      
Income Before Income Taxes
  
$
134,955
  
$
118,829
  
$
130,696
  
$
204,837
  
$
228,082
  
$
257,239
  
Fixed Charges (as below)
    
169,261
    
169,495
    
156,507
    
139,421
    
133,293
    
136,655
  
Total Earnings
  
$
304,216
  
$
288,324
  
$
287,203
  
$
344,258
  
$
361,375
  
$
393,894
  
                                       
FIXED CHARGES
                                      
Interest Expense
  
$
93,647
  
$
93,923
  
$
83,054
  
$
69,071
  
$
65,041
  
$
66,968
  
Credit for Allowance for Borrowed Funds Used
  During Construction
    
1,614
    
2,772
    
3,153
    
1,750
    
4,352
    
5,787
  
Estimated Interest Element in Lease Rentals
    
74,000
    
72,800
    
70,300
    
68,600
    
63,900
    
63,900
  
Total Fixed Charges
  
$
169,261
  
$
169,495
  
$
156,507
  
$
139,421
  
$
133,293
  
$
136,655
  
                                       
Ratio of Earnings to Fixed Charges
    
1.79
    
1.70
    
1.83
    
2.46
    
2.71
    
2.88