**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** |   |               | **Nine****Months                Ended** |               |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|-------------------------------------------|--------|--------------------|-----------------------------------------|--------------------|
|                                                                                                            |   | **2002**                              |    | **2003**                             |   | **2004**      |                                    | **2005**      |   | **2006**  |   |  ** 9/30/2007** |   |   | **9/30/2007** |   |
| **EARNINGS**                                                                                                    |   |                             |    |                            |   |     |                                    |     |   |     |   |    |   |   |   |   |
| Income                Before Income Taxes                                                                       |   | $                                          | 316,418 |                                      | $      | 308,003            |                                    | $                  | 238,226 |   | $ | 202,021 |   | $ | 282,865 |   | $ | 253,987 |   | $ | 146,891 |   |
| Fixed                Charges (as below)                                                                         |   |                                       | 126,797 |                                      |   | 123,721            |                                    |               | 110,547 |   |   | 118,365 |   |   | 151,874 |   |   | 171,023 |   |   | 130,758 |   |
| **Total                Earnings**                                                                               |   | $                                          | 443,215 |                                      | $      | 431,724            |                                    | $                  | 348,773 |   | $ | 320,386 |   | $ | 434,739 |   | $ | 425,010 |   | $ | 277,649 |   |
|                                                                                                            |   |                                       |    |                                      |   |               |                                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                CHARGES**                                                                                |   |                                       |    |                                      |   |               |                                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense                                                                                 |   | $                                          | 116,677 |                                      | $      | 115,202            |                                    | $                  | 99,135 |   | $ | 106,301 |   | $ | 129,106 |   | $ | 161,840 |   | $ | 121,758 |   |
| Credit                for Allowance for Borrowed Funds                  Used During Construction |   |                                       | 5,620   |                                      |   | 5,319              |                                    |               | 8,100 |   |   | 8,764 |   |   | 17,668 |   |   | 4,083 |   |   | 5,175 |   |
| Interest                Rate Hedges                                                                             |   |                                       | -       |                                      |   | -                  |                                    |               | (188 | )  |   | - |   |   | - |   |   | - |   |   | - |   |
| Estimated                Interest Element in Lease                   Rentals                          |   |                                       | 4,500   |                                      |   | 3,200              |                                    |               | 3,500 |   |   | 3,300 |   |   | 5,100 |   |   | 5,100 |   |   | 3,825 |   |
| **Total                Fixed Charges**                                                                          |   | $                                          | 126,797 |                                      | $      | 123,721            |                                    | $                  | 110,547 |   | $ | 118,365 |   | $ | 151,874 |   | $ | 171,023 |   | $ | 130,758 |   |
|                                                                                                            |   |                                       |    |                                      |   |               |                                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                of Earnings to Fixed Charges**                                                           |   |                                       | 3.49    |                                      |   | 3.48               |                                    |               | 3.15 |   |   | 2.70 |   |   | 2.86 |   |   | 2.48 |   |   | 2.12 |   |