EX-12 3 ex12im3q.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
 
 
Nine  Months Ended 
  
   
2002
  
2003
  
2004
  
2005
  
2006
  
 
9/30/2007
 
 
9/30/2007 
  
EARNINGS
                                       
Income Before Income Taxes
  
$
118,829
  
$
130,696
  
$
204,837
  
$
228,082
  
$
197,273
   $
177,938
   $
163,642
  
Fixed Charges (as below)
    
169,495
    
156,507
    
139,421
    
133,293
    
142,388
    
145,522
    
108,691
  
Total Earnings
  
$
288,324
  
$
287,203
  
$
344,258
  
$
361,375
  
$
339,661
   $ 
323,460
   $
272,333
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
93,923
 
$
83,054
  
$
69,071
  
$
65,041
  
$
72,723
   $ 
77,804
   $
57,744
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
2,772
    
3,153
    
1,750
    
4,352
    
7,465
    
 
5,518
    
 
4,297
  
Estimated Interest Element in Lease Rentals     72,800     70,300     68,600     63,900     62,200    
62,200
    
46,650
  
Total Fixed Charges
  
$
169,495
$
156,507
  
$
139,421
  
$
133,293
  
$
142,388
   $ 
145,522
   $
108,691
  
                                             
Ratio of Earnings to Fixed Charges
    
1.70
    
1.83
    
2.46
    
2.71
    
2.38
    
2.22
    
2.50