EX-12 3 ex12im2q.htm COMPUTATION OF RATIOS Computation of Ratios
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 
    
Six
Months
Ended
  
   
2001 
  
2002 
  
2003 
  
2004 
  
2005 
  
6/30/2006 
    
6/30/2006
  
EARNINGS
                                            
Income Before Income Taxes
  
$
134,955
  
$
118,829
  
$
130,696
  
$
204,837
  
$
228,082
  
$
244,332
   $
130,185
  
Fixed Charges (as below)
    
169,261
    
169,495
    
156,507
    
139,421
    
133,293
    
138,613
    
71,186
  
Total Earnings
  
$
304,216
  
$
288,324
  
$
287,203
  
$
344,258
  
$
361,375
  
$
382,945
   $
201,371
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
93,647
  
$
93,923
  
$
83,054
  
$
69,071
  
$
65,041
  
$
68,392
   $
35,435
  
Credit for Allowance for Borrowed Funds
    Used During Construction
    
1,614
    
2,772
    
3,153
    
1,750
    
4,352
    
6,321
    
3,801
  
Estimated Interest Element in Lease Rentals
    
74,000
    
72,800
    
70,300
    
68,600
    
63,900
     63,900    
 31,950
  
Total Fixed Charges
  
$
169,261
  
$
169,495
  
$
156,507
  
$
139,421
  
$
133,293
  
$
138,613
   $
 71,186
  
                                             
Ratio of Earnings to Fixed Charges
    
1.79
    
1.70
    
1.83
    
2.46
    
2.71
    
2.76
    
 2.82