EX-12 2 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)
 
        Twelve    Nine  
         Months    Months  
 
 
Year Ended December 31,
    Ended    Ended  
   
2005
  
2006
  
2007
  
2008
    
2009
    9/30/2010    9/30/2010  
 EARNINGS
                                        
Income Before Income Taxes and Equity Earnings 
  
$
114,341
  
$
138,289
 
$
87,333
  
$
 129,489  
$
140,035
   $ 191,132   $ 189,000  
Fixed Charges (as below)     55,808     63,242     79,435     119,516    
109,146
     124,964      95,878  
Total Earnings
  
$
170,149
  
$
201,531
  
$
166,768
  
$
 249,005   $ 
249,181
   $ 316,096   $ 284,878  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 50,089   $ 55,213   $ 60,619   $ 93,150   $ 
70,500
   $ 82,084   $ 63,478  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
1,198
    
2,208
    
9,795
     19,800    
29,546
     33,780     25,575  
Trust Dividends     (179 )   (179 )   (179 )   (134 )   
-
      -      -  
Estimated Interest Element in Lease Rentals     4,700     6,000     9,200     6,700    
9,100
     9,100     6,825  
Total Fixed Charges
  
$
55,808
  
$
63,242
  
$
79,435
  
$
 119,516   $ 
109,146
   $ 124,964   $ 95,878  
                                             
Ratio of Earnings to Fixed Charges
    
3.04
    
3.18
    
2.09
     2.08    
2.28
    
2.52
     2.97