EX-12 2 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  
    Years Ended December 31,     Ended     Ended  
   
2006
  
2007
    
2008
     2009    2010     3/31/2011     3/31/2011  
EARNINGS
                                          
Income Before Income Taxes
  
$
197,273
  
$
204,394
  
$
 190,133   $ 297,347   $ 189,517   $  197,526    $  74,698   
Fixed Charges (as below)
    
142,388
    
161,849
     164,660     173,293     174,965     173,174      42,356   
Total Earnings
  
$
339,661
  
$
366,243
   $ 354,793   $ 470,640   $ 364,482   $  370,700    $  117,054   
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
72,723
  
$
80,034
   $ 89,851   $ 101,145   $ 104,465   $  103,555    $  25,191   
Credit for Allowance for Borrowed Funds Used
   During Construction
    
7,465
    
5,315
     4,609     8,348     8,500     7,619      1,665   
Estimated Interest Element in Lease Rentals     62,200     76,500     70,200     63,800     62,000     62,000      15,500   
Total Fixed Charges
  
$
142,388
  
$
161,849
   $ 164,660   $ 173,293   $ 174,965   $  173,174    $  42,356   
                                             
Ratio of Earnings to Fixed Charges
    
2.38
    
2.26
     2.15     2.71     2.08     2.14      2.76