EX-12 2 ex12aep20153q.htm COMPUTATION OF RATIOS - AEP Exhibit


EXHIBIT 12
 
 
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in millions except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
Twelve
 
Nine
 
 
 
 
 
 
 
 
 
 
 
 
Months
 
Months
 
 
Years Ended December 31,
 
Ended 
 
Ended
 
 
2010
 
2011
 
2012
 
2013
 
2014
 
9/30/2015
 
9/30/2015
EARNINGS (a)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Income from Continuing Operations Before Income Tax Expense and Equity Earnings
 
$
1,792

 
$
2,298

 
$
1,802

 
$
2,094

 
$
2,403

 
$
2,585

 
$
2,330

Income Distributed from Equity Method Investment
 
—

 
—

 
—

 
—

 
23

 
22

 
13

Fixed Charges (as below)
 
1,202

 
1,149

 
1,197

 
1,083

 
1,052

 
1,074

 
809

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
(4
)
 
(8
)
 
—

 
—

 
—

 
—

 
—

Total Earnings
 
$
2,990

 
$
3,439

 
$
2,999

 
$
3,177

 
$
3,478

 
$
3,681

 
$
3,152

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES (a)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
987

 
$
917

 
$
973

 
$
890

 
$
868

 
$
877

 
$
659

Credit for Allowance for Borrowed Funds Used
   During Construction
 
53

 
63

 
69

 
40

 
44

 
57

 
45

Estimated Interest Element in Lease Rentals
 
158

 
161

 
155

 
153

 
140

 
140

 
105

Preferred Security Dividend Requirements of
   Consolidated Subsidiaries
 
4

 
8

 
—

 
—

 
—

 
—

 
—

Total Fixed Charges
 
$
1,202

 
$
1,149

 
$
1,197

 
$
1,083

 
$
1,052

 
$
1,074

 
$
809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (a)
 
2.48

 
2.99

 
2.50

 
2.93

 
3.30

 
3.42

 
3.89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) All periods presented reflect the reclassification of AEP River Operations as Discontinued Operations. See “AEPRO (AEP River Operations Segment)” section of Note 6 to the Financial Statements for additional information.