EX-12 3 ex12apco2q.htm COMPUTATION OF RATIOS ex12apco2q.htm
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
    
Six 
Months Ended
  
 
 
2002 
  
2003 
  
2004 
  
2005 
  
2006 
  
  6/30/2007
    
6/30/2007
  
EARNINGS
                                           
Income Before Income Taxes
  
$
316,418
  
$
308,003
  
$
238,226
  
$
202,021
  
$
282,865
   $ 265,347   $
113,743
  
Fixed Charges (as below)
    
126,797
    
123,721
    
110,547
    
118,365
    
151,874
     162,412    
83,119
  
Total Earnings
  
$
443,215
  
$
431,724
  
$
348,773
  
$
320,386
  
$
434,739
   $ 427,759   $
196,862
  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
116,677
  
$
115,202
  
$
99,135
  
$
106,301
  
$
129,106
   $ 143,963   $
76,778
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
5,620
    
5,319
    
8,100
    
8,764
    
17,668
     13,349    
3,791
  
Interest Rate Hedges
    
-
    
-
    
(188
 )   
-
 
  
-
    -  
 
-
  
Estimated Interest Element in Lease
   Rentals
    
4,500
    
3,200
    
3,500
    
3,300
     5,100     5,100    
2,550
  
Total Fixed Charges
  
$
126,797
  
$
123,721
  
$
110,547
  
$
118,365
  
$
151,874
   $ 162,412   $
83,119 
  
                                             
Ratio of Earnings to Fixed Charges
    
3.49
    
3.48
    
3.15
    
2.70
    
2.86
     2.63    
2.36