**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** | ** **   | ** ** | **Three                    Months Ended ** | ** ** |
|------------------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------|------------|--------------|--------------------------------------------|--------------|------------|-------------------------------------------------|------------|
| ** **                                                                                                                         | ** ** | **2002**                                       | ** ** | **2003**     | ** **                                 | **2004**     | ** ** | **2005**                                        | ** ** | **2006** | ** ** | ** ** | **3/31/2007** | ** ** | ** ** | **3/31/2007**  |   |
| ** EARNINGS**                                                                                                                 |       |                                      |       |    |                                       |    |       |                                       |       |    |   |   |   |   |   |   |   |
| Income                    Before Income Taxes, Minority Interest                       Expense and Equity Earnings  |       | $                                              | 118,460    |         | $                                          | 142,199      |       | $                                               | 127,417    |   | $ | 114,341 |   | $ | 138,289 |   | $ | 124,440 |   | $  | 13,068 |   |
| Fixed                  Charges (as below)                                                                                          |       |                                           | 60,529     |         |                                       | 67,012       |       |                                            | 58,094     |   |   | 55,808 |   |   | 63,242 |   |   | 66,983 |   |   | 18,591 |   |
| **Total                    Earnings**                                                                                              |       | $                                              | 178,989    |         | $                                          | 209,211      |       | $                                               | 185,511    |   | $ | 170,149 |   | $ | 201,531 |   | $  | 191,423 |   | $  | 31,659 |   |
|                                                                                                                               |       |                                           |       |         |                                       |         |       |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                    CHARGES**                                                                                               |       |                                           |       |         |                                       |         |       |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    Expense                                                                                                |       | $                                              | 59,168     |         | $                                          | 64,105       |       | $                                               | 54,261     |   | $ | 50,089 |   | $ | 55,213 |   | $  | 57,932 |   | $  | 15,490 |   |
| Credit                    for Allowance for Borrowed Funds                       Used During Construction           |       |                                           | 549        |         |                                       | 608          |       |                                            | 312        |   |   | 1,198 |   |   | 2,208 |   |   | 3,230 |   |   | 1,646 |   |
| Trust                  Dividends                                                                                                   |       |                                           | (268       | )            |                                       | (201         | )          |                                            | (179       | ) |   | (179 | ) |   | (179 | ) |   | (179 | )  |   | (45 | )  |
| Estimated                  Interest Element in Lease Rentals                                                                       |       |                                           | 1,080      |         |                                       | 2,500        |       |                                            | 3,700      |   |   | 4,700 |   |   | 6,000 |   |   | 6,000 |   |   | 1,500 |   |
| **Total                    Fixed Charges**                                                                                         |       | $                                              | 60,529     |         | $                                          | 67,012       |       | $                                               | 58,094     |   | $ | 55,808 |   | $ | 63,242 |   | $  | 66,983 |   | $  | 18,591 |   |
|                                                                                                                               |       |                                           |       |         |                                       |         |       |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                    of Earnings to Fixed Charges**                                                                          |       |                                           | 2.95       |         |                                       | 3.12         |       |                                            | 3.19       |   |   | 3.04 |   |   | 3.18 |   |   | 2.85 |   |   | 1.70 |   |