EX-12 3 ex12apco1q.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
    
Three 
Months Ended
  
 
 
2002 
  
2003 
  
2004 
  
2005 
  
2006 
  
  3/31/2007
    
3/31/2007
  
EARNINGS
                                           
Income Before Income Taxes
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
  
$
282,865
   $ 277,155   $
111,933
  
Fixed Charges (as below)
    
126,797
    
123,721
    
110,547
    
118,365
    
151,874
     155,160    
38,658
  
Total Earnings
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
  
$
434,739
   $ 432,315   $
150,591
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
  
$
129,106
   $ 130,661   $
31,823
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
5,620
    
5,319
    
8,100
    
8,764
    
17,668
     19,399    
5,560
  
Interest Rate Hedges
    
-
    
-
    
(188
 )   
-
 
  
-
    -  
 
-
  
Estimated Interest Element in Lease
   Rentals
    
4,500
    
3,200
    
3,500
    
3,300
     5,100     5,100    
1,275
  
Total Fixed Charges
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
  
$
151,874
   $ 155,160   $
38,658 
  
                                             
Ratio of Earnings to Fixed Charges
    
3.49
    
3.48
    
3.15
    
2.70
    
2.86
     2.78    
3.89