EX-12 3 ex12im1q.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) 
 
          Twelve     Three   
          Months      Months  
   
Year Ended December 31,
     Ended      Ended  
   
2003
  
2004
  
2005
  
2006
    
2007
     3/31/2008      3/31/2008  
EARNINGS
                                        
Income Before Income Taxes
  
$
130,696
  
$
204,837
  
$
228,082
  
$
197,273
   $ 
 204,394
   $ 240,607   $ 81,080  
Fixed Charges (as below)
    
156,507
    
139,421
    
133,293
    
142,388
    
 161,849
     161,270      39,453  
Total Earnings
  
$
287,203
  
$
344,258
  
$
361,375
  
$
339,661
   $
 366,243
   $ 401,877   $ 120,533  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
83,054
  
$
69,071
  
$
65,041
  
$
72,723
   $
 80,034
   $
 79,415
   $ 19,202  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
3,153
    
1,750
    
4,352
    
7,465
      5,315     5,355     1,126  
Estimated Interest Element in Lease Rentals     70,300     68,600     63,900     62,200    
 76,500
     76,500     19,125  
Total Fixed Charges
  
$
156,507
  
$
139,421
  
$
133,293
  
$
142,388
   $
 161,849
   $  161,270   $ 39,453  
                                             
Ratio of Earnings to Fixed Charges
    
1.83
    
2.46
    
2.71
    
2.38
    
 2.26
     2.49     3.05