**KENTUCKY        POWER COMPANY**

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

**(in        thousands except ratio data)**

|                                                                                                                 |   | **Year                  Ended December 31,** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                                                 |   | **2001**                                     |   | **2002** |   | **2003** |   | **2004** |   | **2005** |   |
| **EARNINGS**                                                                                                         |   |                                    |   |    |   |    |   |    |   |    |   |
| Income                  Before Income Taxes                                                                          |   | $                                            | 31,607 |   | $ | 31,429 |   | $ | 43,139 |   | $ | 34,576 |   | $ | 32,945 |   |
| Fixed                Charges (as below)                                                                              |   |                                         | 29,066 |   |   | 29,470 |   |   | 29,943 |   |   | 30,404 |   |   | 29,928 |   |
| **Total                  Earnings**                                                                                  |   | $                                            | 60,673 |   | $ | 60,899 |   | $ | 73,082 |   | $ | 64,980 |   | $ | 62,873 |   |
|                                                                                                                 |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                  CHARGES**                                                                                   |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  Expense                                                                                    |   | $                                            | 27,361 |   | $ | 26,836 |   | $ | 28,620 |   | $ | 29,470 |   | $ | 29,071 |   |
| Credit                  for Allowance for Borrowed Funds Used                     During Construction |   |                                         | 505    |   |   | 1,634 |   |   | 723 |   |   | 234 |   |   | 257  |   |
| Estimated                Interest Element in Lease Rentals                                                           |   |                                         | 1,200  |   |   | 1,000 |   |   | 600 |   |   | 700 |   |   | 600  |   |
| **Total                  Fixed Charges**                                                                             |   | $                                            | 29,066 |   | $ | 29,470 |   | $ | 29,943 |   | $ | 30,404 |   | $ | 29,928 |   |
|                                                                                                                 |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                  of Earnings to Fixed Charges**                                                              |   |                                         | 2.08   |   |   | 2.06 |   |   | 2.44 |   |   | 2.13 |   |   | 2.10 |   |