EXHIBIT 12

SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data)

	Year Ended December 31,										Twelve Months Ended
	1998		1999		2000		2001		2002		9/30/03
Earnings:
Net Income Before Extraordinary Item
And Cumulative Effect of
Accounting Changes	$97,994		$86,205		$72,672		$89,367		$82,992		$84,146
Plus Federal Income Taxes	57,506		49,180		12,058		70,121		37,439		23,927
Plus State Income Taxes	5,089		6,162		2,538		8,385		5,687		5,721
Plus Provision for Deferred Income Taxes	(11,909	)	(17,347	)	14,653		(31,396	)	(3,134	)	12,583
Plus Deferred Investment Tax Credits	(4,631	)	(4,565	)	(4,482	)	(4,453	)	(4,524	)	(4,375	)
Plus Fixed Charges (as below)	57,084		61,177		62,851		60,503		60,529		65,552
Total Earnings	$201,133		$180,812		$160,290		$192,527		$178,989		$187,554
Fixed Charges:
Interest on Long-term Debt	$39,233		$38,380		$43,547		$41,401		$43,011	*	50,457
Interest on Short-term Debt	8,591		13,800		10,174		9,680		7,776	*	7,518
Distributions on Trust Preferred Securities	8,662		8,662		8,663		8,663		8,662		6,497
Interest Portion of Financing Leases	598		335		--		--		--		--
Estimated Interest Element in Lease Rentals	--		--		467		759		1,080		1,080
Total Fixed Charges	$57,084		$61,177		$62,851		$60,503		$60,529		$65,552
Ratio of Earnings to Fixed Charges	3.52		2.95		2.55		3.18		2.95		2.86

* Certain amounts have been reclassified between interest on short-term and long-term debt compared to periods prior to January 1, 2002. This reclassification had no affect on the ratio.