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)
 
          Twelve     Nine   
          Months      Months  
   
Year Ended December 31,
     Ended      Ended  
   
2004
  
2005
  
2006
  
2007
    
2008
     9/30/2009      9/30/2009  
EARNINGS
                                        
Income Before Income Taxes
  
$
204,837
  
$
228,082
  
$
197,273
  
$
204,394
  
$
 190,133   $ 236,841   $ 266,094  
Fixed Charges (as below)
    
139,421
    
133,293
    
142,388
    
161,849
     164,660     186,550     133,931  
Total Earnings
  
$
344,258
  
$
361,375
  
$
339,661
  
$
366,243
   $ 354,793   $ 423,391   $ 400,025  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
69,071
  
$
65,041
  
$
72,723
  
$
80,034
   $ 89,851   $ 108,246   $ 75,372  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
1,750
    
4,352
    
7,465
    
5,315
     4,609     8,104     5,909  
Estimated Interest Element in Lease Rentals     68,600     63,900     62,200     76,500     70,200     70,200     52,650  
Total Fixed Charges
  
$
139,421
  
$
133,293
  
$
142,388
  
$
161,849
   $ 164,660   $ 186,550   $ 133,931  
                                             
Ratio of Earnings to Fixed Charges
    
2.46
    
2.71
    
2.38
    
2.26
     2.15     2.26     2.98