**INDIANA        MICHIGAN POWER COMPANY AND SUBSIDIARIES**

**Computation        of Consolidated 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                                                                   |   | $                                            | 134,955 |   | $ | 118,829 |   | $ | 130,696 |   | $ | 204,837 |   | $ | 228,082 |   |
| Fixed                    Charges (as below)                                                                     |   |                                         | 169,261 |   |   | 169,495 |   |   | 156,507 |   |   | 139,421 |   |   | 133,293 |   |
| **Total                  Earnings**                                                                             |   | $                                            | 304,216 |   | $ | 288,324 |   | $ | 287,203 |   | $ | 344,258 |   | $ | 361,375 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                  CHARGES**                                                                              |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  Expense                                                                               |   | $                                            | 93,647  |   | $ | 93,923 |   | $ | 83,054 |   | $ | 69,071 |   | $ | 65,041 |   |
| Credit                  for Allowance for Borrowed Funds Used                     During Construction |   |                                         | 1,614   |   |   | 2,772 |   |   | 3,153 |   |   | 1,750 |   |   | 4,352 |   |
| Estimated                Interest Element in Lease Rentals                                                      |   |                                         | 74,000  |   |   | 72,800 |   |   | 70,300 |   |   | 68,600 |   |   | 63,900 |   |
| **Total                  Fixed Charges**                                                                        |   | $                                            | 169,261 |  | $ | 169,495 |   | $ | 156,507 |   | $ | 139,421 |   | $ | 133,293 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                  of Earnings to Fixed Charges**                                                         |   |                                         | 1.79    |   |   | 1.70 |   |   | 1.83 |   |   | 2.46 |   |   | 2.71 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
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