**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** |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------------|-------------------------------|--------|
|                                                                                                                       |   | **2000**                                       |         | **2001**                      |   | **2002** |   | **2003** |   | **2004** |   | **6/30/05** |   |
| **FIXED                    CHARGES**                                                                                       |   |                                      |         |                     |   |    |   |    |   |    |   |    |   |
|   Interest                    on Long-term Debt                                                                  |   | $                                              | 43,547       |                          | $      | 41,401 |   | $ | 43,011 |  | $ | 53,309 |   | $ | 46,080 |   | $ | 43,579 |   |
|   Interest                    on Short-term Debt                                                                 |   |                                           | 10,174       |                          |   | 9,680 |   |   | 7,776 |  |   | 6,545 |   |   | 7,581 |   |   | 8,110 |   |
|   Distributions                    on Trust Preferred                    Securities                              |   |                                           | 8,663        |                          |   | 8,663 |   |   | 8,662 |   |   | 4,331 |   |   | - |   |   | - |   |
|   Estimated                    Interest Element in Lease                    Rentals                              |   |                                           | 467          |                          |   | 759 |   |   | 1,080 |   |   | 2,500 |   |   | 3,700 |   |   | 3,700 |   |
|                                                                                                                       |   |                                           |         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **     Total                    Fixed                    Charges**                                |   | $                                              | 62,851       |                          | $      | 60,503 |   | $ | 60,529 |   | $ | 66,685 |   | $ | 57,361 |   | $ | 55,389 |   |
|                                                                                                                       |   |                                           |         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS**                                                                                                               |   |                                           |         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income                    Before Cumulative Effect of                        Accounting Changes |   | $                                              | 72,672       |                          | $      | 89,367 |   | $ | 82,992 |   | $ | 89,624 |   | $ | 89,457 |   | $ | 87,998 |   |
|   Plus                    Federal Income Taxes                                                                   |   |                                           | 12,058       |                          |   | 70,121 |   |   | 37,439 |   |   | 37,315 |   |   | 21,305 |   |   | 14,465 |   |
|   Plus                    State Income Taxes                                                                     |   |                                           | 2,538        |                          |   | 8,385 |   |   | 5,687 |   |   | 8,140 |   |   | 4,966 |   |   | 3,308 |   |
|   Plus Provision                  for                  Deferred Income Taxes                                          |   |                                           |  14,653 |                          |   |  (31,396 | )  |   |  (3,134 | )  |   |  9,942 |   |   |  12,782 |   |   | 17,476 |   |
|   Plus Deferred                  Investment                  Tax Credits                                              |   |                                           |  (4,482 | )                        |   |  (4,453 | )  |   |  (4,524 | )  |   |  (4,325 | )  |   |  (4,326 | )  |   |  (4,309 | )  |
|   Plus                    Fixed Charges (as above)                                                               |   |                                           | 62,851       |                          |   | 60,503 |   |   | 60,529 |   |   | 66,685 |   |   | 57,361 |   |   | 55,389 |   |
|                                                                                                                       |   |                                           |         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **     Total                    Earnings**                                                        |   | $                                              | 160,290      |                          | $      | 192,527 |   | $ | 178,989 |   | $ | 207,381 |   | $ | 181,545 |   | $ | 174,327 |   |
|                                                                                                                       |   |                                           |         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                    of Earnings to Fixed Charges**                                                                  |   |                                           | 2.55         |                          |   | 3.18 |   |   | 2.95 |   |   | 3.10 |   |   | 3.16 |   |   | 3.14 |   |