EX-12 3 ex12apco3q.htm COMPUTATION OF RATIOS Computation of Ratios
EXHIBIT 12
 
 
APPALACHIAN 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
  
 
 
2001 
  
2002 
  
2003 
  
2004 
  
2005 
  
  9/30/2006
    
9/30/2006
  
EARNINGS
                                           
Income Before Income Taxes
  
$
258,541
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
   $ 214,976   $
175,769
  
Fixed Charges (as below)
    
130,293
    
126,797
    
123,721
    
110,547
    
118,365
     142,146    
110,259
  
Total Earnings
  
$
388,834
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
   $ 357,122   $
286,028
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
120,036
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
   $ 119,005   $
89,024
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
4,457
    
5,620
    
5,319
    
8,100
    
8,764
     19,841    
18,760
  
Interest Rate Hedges
    
-
    
-
    
-
    
(188
)
  
-
    -  
 
-
  
Estimated Interest Element in Lease
   Rentals
    
5,800
    
4,500
    
3,200
    
3,500
    
3,300
     3,300    
2,475
  
Total Fixed Charges
  
$
130,293
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
   $ 142,146   $
 110,259
  
                                             
Ratio of Earnings to Fixed Charges
    
2.98
    
3.49
    
3.48
    
3.15
    
2.70
     2.51    
2.59