**SOUTHWESTERN          ELECTRIC POWER COMPANY CONSOLIDATED **

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

**(in          thousands except ratio data)**

|                                                                                                                                                       |   | **Year                      Ended December                      31,**          |    | **Twelve                      Months Ended**  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------|--------|
|                                                                                                                                                       |   | **2001**                                                                                                               |    | **2002**                                      |   | **2003**  |   | **2004**  |   | **2005**  |   | **3/31/2006**  |   |
| ** EARNINGS**                                                                                                                                         |   |                                                                                                              |    |                                     |   |     |   |     |   |     |   |     |   |
| Income                      Before Income Taxes, Minority                         Interest Expense                      and Equity Earnings |   | $                                                                                                                           | 132,025 |                                               | $      | 118,460 |   | $ | 142,199 |   | $ | 127,417 |   | $ | 114,341 |   | $ | 123,771 |   |
| Fixed                      Charges (as below)                                                                                                              |   |                                                                                                                        | 60,503  |                                               |   | 60,529 |   |   | 67,012 |   |   | 58,094 |   |   | 55,808 |   |   | 56,224 |   |
| **Total                      Earnings**                                                                                                                    |   | $                                                                                                                           | 192,528 |                                               | $      | 178,989 |   | $ | 209,211 |   | $ | 185,511 |   | $ | 170,149 |   | $ | 179,995 |   |
|                                                                                                                                                       |   |                                                                                                                        |    |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                      CHARGES**                                                                                                                     |   |                                                                                                                        |    |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                      Expense                                                                                                                      |   | $                                                                                                                           | 57,581  |                                               | $      | 59,168 |   | $ | 64,105 |   | $ | 54,261 |   | $ | 50,089 |   | $ | 50,080 |   |
| Credit                      for Allowance for Borrowed Funds                         Used During                      Construction     |   |                                                                                                                        | 2,163   |                                               |   | 549 |   |   | 608 |   |   | 312 |   |   | 1,198 |   |   | 1,623 |   |
| Trust                      Dividends                                                                                                                       |   |                                                                                                                        | -       |                                               |   | (268 | ) |   | (201 | ) |   | (179 | ) |   | (179 | )  |   | (179 | ) |
| Estimated                      Interest Element in Lease Rentals                                                                                           |   |                                                                                                                        | 759     |                                               |   | 1,080 |   |   | 2,500 |   |   | 3,700 |   |   | 4,700 |   |   | 4,700 |   |
| **Total                      Fixed Charges**                                                                                                               |   | $                                                                                                                           | 60,503  |                                               | $      | 60,529 |   | $ | 67,012 |   | $ | 58,094 |   | $ | 55,808 |   | $ | 56,224 |   |
|                                                                                                                                                       |   |                                                                                                                        |    |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                      of Earnings to Fixed Charges**                                                                                                |   |                                                                                                                        | 3.18    |                                               |   | 2.95 |   |   | 3.12 |   |   | 3.19 |   |   | 3.04 |   |   | 3.20 |   |