EX-12 3 ex12swepco2q.htm COMPUTATION OF RATIOS ex12swepco2q.htm
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
    
Six Months Ended 
  
   
2002
  
2003
  
2004
  
2005
  
2006
    
6/30/2007
    
6/30/2007 
  
 EARNINGS
                                       
Income Before Income Taxes, Minority
   Interest Expense and Equity Earnings 
  
$
118,460
  
$
142,199
  
$
127,417
 
$
114,341
  
$
138,289
  
$
83,784
   $ 
14,111
  
Fixed Charges (as below)     60,529     67,012     58,094     55,808     63,242    
71,746
    
39,424
  
Total Earnings
  
$
178,989
  
$
209,211
  
$
185,511
  
$
170,149
  
$
201,531
   $ 
155,530
   $ 
53,535
  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 59,168   $ 64,105   $ 54,261   $ 50,089   $ 55,213   $ 
61,094
   $ 
32,725
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
549
    
608
    
312
    
1,198
    
2,208
    
4,831
    
3,788
  
Trust Dividends     (268 )   (201 )   (179 )   (179 )   (179 )  
(179
 )   
(89
 ) 
Estimated Interest Element in Lease Rentals     1,080     2,500     3,700     4,700     6,000    
6,000
    
3,000
  
Total Fixed Charges
  
$
60,529
  
$
67,012
  
$
58,094
  
$
55,808
  
$
63,242
   $ 
71,746
   $ 
39,424
  
                                             
Ratio of Earnings to Fixed Charges
    
2.95
    
3.12
    
3.19
    
3.04
    
3.18
    
2.16
    
1.35