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
	1999		2000	2001		2002		2003		9/30/04
Fixed Charges:
Interest on Long-term Debt	$38,380		$43,547	$41,401		$43,011		$53,309		$49,801
Interest on Short-term Debt	13,800		10,174	9,680		7,776		6,545		7,207
Distributions on Trust Preferred Securities	8,662		8,663	8,663		8,662		4,331		-
Interest Portion of Financing Leases	335		-	-		-		-		-
Estimated Interest Element in Lease Rentals	-		467	759		1,080		2,500		2,500
Total Fixed Charges	$61,177		$62,851	$60,503		$60,529		$66,685		$59,508
Earnings:
Net Income Before Extraordinary Item
And Cumulative Effect of
Accounting Changes	$86,205		$72,672	$89,367		$82,992		$89,624		$96,539
Plus Federal Income Taxes	49,180		12,058	70,121		37,439		37,315		42,599
Plus State Income Taxes	6,162		2,538	8,385		5,687		8,140		7,918
Plus Provision for Deferred Income Taxes	(17,347	)	14,653	(31,396	)	(3,134	)	9,942		2,218
Plus Deferred Investment Tax Credits	(4,565	)	(4,482)	(4,453	)	(4,524	)	(4,325	)	(4,326	)
Plus Fixed Charges (as below)	61,177		62,851	60,503		60,529		66,685		59,508
Total Earnings	$180,812		$160,290	$192,527		$178,989		$207,381		$204,456
Ratio of Earnings to Fixed Charges	2.95		2.55	3.18		2.95		3.10		3.43

* 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 effect on the ratio.

* Certain amounts have been reclassified between Distributions on Trust Preferred Securities and Interest on Long-term Debt due to the implementation of FIN 46R "Consolidation of Variable Interest Entities" effective March 31, 2004, on a prospective basis. This reclassification had no effect on this ratio.