**AEP        TEXAS CENTRAL COMPANY AND SUBSIDIARIES**

**Computation        of Consolidated Ratios of Earnings to Fixed Charges **

**(in        thousands except ratio data) **

|                                                                                                                    |   | **Year                    Ended December 31,** |    | **Twelve****Months****Ended** |   |     | **Nine****Months****Ended** |     |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|-------------------------------|--------|----------|-----------------------------|----------|
|                                                                                                                    |   | **2001**                                       |    | **2002**                      |   | **2003** |                        | **2004** |   | **2005** |   | **9/30/2006** |   |   | ** 9/30/2006** |   |
| **EARNINGS**                                                                                                            |   |                                           |    |                          |   |     |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                    Before Income Taxes                                                                           |   | $                                              | 293,425 |                          | $      | 418,107  |                        | $        | 322,719 |   | $ | 429,714 |   | $ | 63,213 |   | $ | 20,985 |   | $ |  55,791 |   |
| Fixed                    Charges (as below)                                                                             |   |                                           | 125,194 |                          |   | 132,237  |                        |     | 136,143 |   |   | 125,701 |   |   | 115,439 |   |   | 124,470 |   |   |  96,463 |   |
| **Total Earnings**                                                                                                 |   | $                                              | 418,619 |                          | $      | 550,344  |                        | $        | 458,862 |   | $ | 555,415 |   | $ | 178,652 |   | $ | 145,455 |   | $ |  152,254 |   |
|                                                                                                                    |   |                                           |    |                          |   |     |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                    CHARGES**                                                                                    |   |                                           |    |                          |   |     |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    Expense                                                                                     |   | $                                              | 116,268 |                          | $      | 125,871  |                        | $        | 133,812 |   | $ | 123,785 |   | $ | 112,006 |   | $ | 120,312 |   | $ |  93,401 |   |
| Credit                    for Allowance for Borrowed Funds   Used During                    Construction |   |                                           | 6,943   |                          |   | 4,620    |                        |     | 567 |   |   | 750 |   |   | 1,508 |   |   | 2,233 |   |   |  1,618 |   |
| Trust Dividends                                                                                                         |   |                                           | -       |                          |   | (649     | )                           |     | (372 | ) |   | (216 | ) |   | - |   |   | - |   |   |  - |   |
| Estimated                    Interest Element in Lease   Rentals                                         |   |                                           | 1,983   |                          |   | 2,395    |                        |     | 2,136 |   |   | 1,382 |   |   | 1,925 |   |   | 1,925 |   |   |  1,444 |   |
| **Total                    Fixed Charges**                                                                              |   | $                                              | 125,194 |                          | $      | 132,237  |                        | $        | 136,143 |   | $ | 125,701 |   | $ | 115,439 |   | $ | 124,470 |   | $ |  96,463 |   |
|                                                                                                                    |   |                                           |    |                          |   |     |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                    of Earnings to Fixed Charges**                                                               |   |                                           | 3.34    |                          |   | 4.16     |                        |     | 3.37 |   |   | 4.41 |   |   | 1.54 |   |   | 1.16 |   |   |  1.57 |   |