EX-12 2 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)
 
           Twelve    Six  
         Months    Months  
 
 
Years Ended December 31,
      Ended      Ended  
   
2006
  
2007
  
2008
    
2009
    2010     6/30/2011     6/30/2011  
 EARNINGS
                                         
Income Before Income Taxes and Equity Earnings 
  
$
138,289
 
$
87,333
  
$
 129,489  
$
140,035
   $
208,484
   $  246,892   $  113,602  
Fixed Charges (as below)     63,242     79,435     119,516    
109,146
    
132,106
      136,583      68,309  
Total Earnings
  
$
201,531
  
$
166,768
  
$
 249,005   $ 
249,181
   $
340,590
   $  383,475   $  181,911  
                                             
FIXED CHARGES
                                            
Interest Expense
   $ 55,213   $ 60,619   $ 93,150   $ 
70,500
   $
86,538
   $  89,779   $  43,260  
Credit for Allowance for Borrowed Funds
   Used During Construction
    
2,208
    
9,795
     19,800    
29,546
    
33,668
      34,904     19,099  
Trust Dividends     (179 )   (179 )   (134 )   
-
    
-
      -      -  
Estimated Interest Element in Lease Rentals     6,000     9,200     6,700    
9,100
    
11,900
      11,900      5,950  
Total Fixed Charges
  
$
63,242
  
$
79,435
  
$
 119,516   $ 
109,146
   $
132,106
   $  136,583   $  68,309  
                                             
Ratio of Earnings to Fixed Charges
    
3.18
    
2.09
     2.08    
2.28
    
2.57
      2.80      2.66