EX-12 3 ex12swepco2q.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
    
Six Months Ended 
  
   
2004
  
2005
  
2006
  
2007
  
2008
    
6/30/2009
    
6/30/2009
  
 EARNINGS
                                       
Income Before Income Taxes and Equity Earnings 
  
$
127,417
  
$
114,341
  
$
138,289
 
$
87,333
  
$
 129,489  
$
165,705
   $ 
58,165
  
Fixed Charges (as below)     58,094     55,808     63,242     79,435     119,516    
126,633
    
52,364
  
Total Earnings
  
$
185,511
  
$
170,149
  
$
201,531
  
$
166,768
  
$
 249,005   $ 
292,338
   $ 
110,529
  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 54,261   $ 50,089   $ 55,213   $ 60,619   $ 93,150   $ 
94,027
   $ 
35,289
  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
312
    
1,198
    
2,208
    
9,795
     19,800    
25,951
    
13,725
  
Trust Dividends     (179 )   (179 )   (179 )   (179 )   (134 )   
(45
 )   
-
  
Estimated Interest Element in Lease Rentals     3,700     4,700     6,000     9,200     6,700    
6,700
    
3,350
  
Total Fixed Charges
  
$
58,094
  
$
55,808
  
$
63,242
  
$
79,435
  
$
 119,516   $ 
126,633
   $ 
52,364
  
                                             
Ratio of Earnings to Fixed Charges
    
3.19
    
3.04
    
3.18
    
2.09
     2.08    
2.30
    
2.11