EX-12 2 ex12aep3q.htm COMPUTATION OF RATIOS - AEP Unassociated Document
EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIAIRIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
          Twelve      Nine  
          Months       Months  
   
Years Ended December 31,
   Ended     Ended   
   
2006
  
2007
  
2008
  
2009
    2010       9/30/2011     9/30/2011  
EARNINGS
                                         
Income Before Income Tax Expense and Equity Earnings
  
$
1,483
  
$
1,663
  
$
2,015
  
$
1,938
  
$
1,849
   $  2,419   $   2,132  
Fixed Charges (as below)
    
999
    
1,146
    
1,240
    
1,237
    
1,254
      1,229      919  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      (4 )     (4 )     (4 )     (4 )    (4 )     (4 )     (2 ) 
Total Earnings
  
$
2,478
  
$
2,805
  
$
3,251
   $
3,171
  
$
3,099
   $   3,644   $   3,049  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
729
  
$
838
  
$
957
   $ 973  
$
 999   $   972   $   723  
Credit for Allowance for Borrowed Funds Used
   During Construction
    
82
    
79
    
75
     67     53      55      45  
Estimated Interest Element in Lease Rentals     184     225     204     193     198      198      149  
Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
      4      4      4      4      4      4      2  
Total Fixed Charges
  
$
999
  
$
1,146
  
$
1,240
   $
1,237
  
$
1,254
   $   1,229   $   919  
                                             
Ratio of Earnings to Fixed Charges
    
2.48
    
2.44
    
2.62
    
2.56
    
2.47
      2.96      3.31