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EXHIBIT 12
INDIANA MICHIGAN POWER COMPANY
Computation of Consolidated Ratio of Earnings to Fixed Charges
(in thousands except ratio data)
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Twelve
Months
Year Ended December 31, Ended
1995 1996 1997 1998 1999 6/30/00
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Fixed Charges:
Interest on First Mortgage Bonds. . . $ 43,410 $ 41,209 $ 39,678 $ 35,910 $ 31,442 $ 27,020
Interest on Other Long-term Debt. . . 23,564 20,100 21,064 27,457 38,623 47,798
Interest on Short-term Debt . . . . . 2,003 2,982 3,248 4,903 9,207 16,824
Miscellaneous Interest Charges. . . . 3,472 3,262 3,187 3,113 6,754 4,072
Estimated Interest Element in
Lease Rentals . . . . . . . . . . . 82,700 82,600 79,700 79,300 73,800 73,800
Total Fixed Charges. . . . . . . $155,149 $150,153 $146,877 $150,683 $159,826 $169,514
Earnings:
Net Income. . . . . . . . . . . . . . $141,092 $157,153 $146,740 $ 96,628 $ 32,776 $(72,773)
Plus Federal Income Taxes . . . . . . 55,990 76,899 74,223 47,210 18,866 (38,163)
Plus State Income Taxes . . . . . . . 7,058 9,270 7,519 4,938 (7,352) (10,440)
Plus Fixed Charges (as above) . . . . 155,149 150,153 146,877 150,683 159,826 169,514
Total Earnings . . . . . . . . . $359,289 $393,475 $375,359 $299,459 $204,116 $ 48,138
Ratio of Earnings to Fixed Charges. . . 2.31 2.62 2.55 1.98 1.27 0.28
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