**APPALACHIAN      POWER COMPANY AND SUBSIDIARIES**

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

**(in      thousands except ratio data)**

|                                                                                                                           |   | **Year                Ended December 31,** |    |  ** Twelve                Months Ended** |   |               | **Six****Months                Ended** |               |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|----------------------------------------------------|--------|--------------------|----------------------------------------|--------------------|
|                                                                                                                           |   | **2001**                              |    | **2002**                                      |   | **2003**      |                                   | **2004**      |   | **2005**  |   |  ** 6/30/2006** |   |   | **6/30/2006** |   |
| **EARNINGS**                                                                                                                   |   |                             |    |                                     |   |     |                                   |     |   |     |   |    |   |   |   |   |
| Income                Before Income Taxes                                                                                      |   | $                                          | 258,541 |                                               | $      | 316,418            |                                   | $                  | 308,003 |   | $ | 238,226 |   | $ | 202,021 |   | $ | 228,677 |   | $ |  131,261 |   |
| Fixed                Charges (as below)                                                                                        |   |                                       | 130,293 |                                               |   | 126,797            |                                   |               | 123,721 |   |   | 110,547 |   |   | 118,365 |   |   | 132,373 |   |   | 71,682 |   |
| **Total                Earnings**                                                                                              |   | $                                          | 388,834 |                                               | $      | 443,215            |                                   | $                  | 431,724 |   | $ | 348,773 |   | $ | 320,386 |   | $ | 361,050 |   | $ |  202,943 |   |
|                                                                                                                           |   |                                       |    |                                               |   |               |                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                     CHARGES**                                                                                          |   |                                       |    |                                               |   |               |                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense                                                                                                |   | $                                          | 120,036 |                                               | $      | 116,677            |                                   | $                  | 115,202 |   | $ | 99,135 |   | $ | 106,301 |   | $ | 116,878 |   | $ |  61,921 |   |
| Credit                for Allowance for Borrowed Funds                  Used During                Construction |   |                                       | 4,457   |                                               |   | 5,620              |                                   |               | 5,319 |   |   | 8,100 |   |   | 8,764 |   |   | 12,195 |   |   | 8,111 |   |
| Interest                Rate Hedges                                                                                            |   |                                       | -       |                                               |   | -                  |                                   |               | - |   |   | (188 | ) |   | - |   |   | - |   |   | - |   |
| Estimated                Interest Element in Lease                   Rentals                                         |   |                                       | 5,800   |                                               |   | 4,500              |                                   |               | 3,200 |   |   | 3,500 |   |   | 3,300 |   |   | 3,300 |   |   | 1,650 |   |
| **Total                Fixed Charges**                                                                                         |   | $                                          | 130,293 |                                               | $      | 126,797            |                                   | $                  | 123,721 |   | $ | 110,547 |   | $ | 118,365 |   | $ | 132,373 |   | $ |  71,682 |   |
|                                                                                                                           |   |                                       |    |                                               |   |               |                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                of Earnings to Fixed Charges**                                                                          |   |                                       | 2.98    |                                               |   | 3.49               |                                   |               | 3.48 |   |   | 3.15 |   |   | 2.70 |   |   | 2.72 |   |   | 2.83 |   |