EX-12 4 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 
  
   
2003
  
2004
  
2005
  
2006
  
2007
    
6/30/2008
    
6/30/2008
  
 EARNINGS
                                       
Income Before Income Taxes, Minority
   Interest Expense and Equity Earnings 
  
$
142,199
  
$
127,417
  
$
114,341
 
$
138,289
  
$
87,333
  
$
95,171
   $ 
21,949
  
Fixed Charges (as below)     67,012     58,094     55,808     63,242     79,435    
84,908
    
46,497
  
Total Earnings
  
$
209,211
  
$
185,511
  
$
170,149
  
$
201,531
  
$
166,768
   $ 
180,079
   $ 
68,446
  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 64,105   $ 54,261   $ 50,089   $ 55,213   $ 60,619   $ 
62,306
   $ 
34,412
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
608
    
312
    
1,198
    
2,208
    
9,795
    
13,581
    
7,574
  
Trust Dividends     (201 )   (179 )   (179 )   (179 )   (179 )  
(179
 )   
(89
 ) 
Estimated Interest Element in Lease Rentals     2,500     3,700     4,700     6,000     9,200    
9,200
    
4,600
  
Total Fixed Charges
  
$
67,012
  
$
58,094
  
$
55,808
  
$
63,242
  
$
79,435
   $ 
84,908
   $ 
46,497
  
                                             
Ratio of Earnings to Fixed Charges
    
3.12
    
3.19
    
3.04
    
3.18
    
2.09
    
2.12
    
1.47