EX-12 8 ex12apco4q.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,
  
   
2002
  
2003
  
2004
  
2005
  
2006
  
EARNINGS
                           
Income Before Income Taxes
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
  
$
282,865
  
Fixed Charges (as below)     126,797     123,721     110,547     118,365     151,874  
Total Earnings
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
  
$
434,739
  
                                 
FIXED CHARGES
                                
Interest Expense
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
  
$
129,106
  
Credit for Allowance for Borrowed Funds Used
   During Construction
     5,620     5,319     8,100     8,764     17,668  
Interest Rate Hedges      -     -     (188 )   -     -   
Estimated Interest Element in Lease Rentals     4,500     3,200     3,500     3,300     5,100  
Total Fixed Charges
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
  
$
151,874
  
                                 
Ratio of Earnings to Fixed Charges
    
3.49
    
3.48
    
3.15
    
2.70
    
2.86