EX-12 3 ex12swepco3q.htm COMPUTATION OF RATIOS Unassociated Document
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
    
Nine
 Months Ended 
  
   
2002
  
2003
  
2004
  
2005
  
2006
    
9/30/2007
    
9/30/2007 
  
 EARNINGS
                                       
Income Before Income Taxes, Minority
   Interest Expense and Equity Earnings 
  
$
118,460
  
$
142,199
  
$
127,417
 
$
114,341
  
$
138,289
  
$
70,096
   $ 
78,961
  
Fixed Charges (as below)     60,529     67,012     58,094     55,808     63,242    
75,898
    
59,578
  
Total Earnings
  
$
178,989
  
$
209,211
  
$
185,511
  
$
170,149
  
$
201,531
   $ 
145,994
   $ 
138,539
  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 59,168   $ 64,105   $ 54,261   $ 50,089   $ 55,213   $ 
63,216
   $ 
48,691
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
549
    
608
    
312
    
1,198
    
2,208
    
6,861
    
6,521
  
Trust Dividends     (268 )   (201 )   (179 )   (179 )   (179 )  
(179
 )   
(134
 ) 
Estimated Interest Element in Lease Rentals     1,080     2,500     3,700     4,700     6,000    
6,000
    
4,500
  
Total Fixed Charges
  
$
60,529
  
$
67,012
  
$
58,094
  
$
55,808
  
$
63,242
   $ 
75,898
   $ 
59,578
  
                                             
Ratio of Earnings to Fixed Charges
    
2.95
    
3.12
    
3.19
    
3.04
    
3.18
    
1.92
    
2.32