**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**  |   | **Six****Months                      Ended** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|----------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                                                                                       |   | **2001**                                    |    | **2002**                                      |   | **2003**                                |   | **2004**  |   | **2005**  |   | **6/30/2006**  |   | **6/30/2006** |   |
| ** EARNINGS**                                                                                                                                         |   |                                   |    |                                     |   |                               |   |     |   |     |   |     |   |   |   |   |
| Income                      Before Income Taxes, Minority                         Interest Expense                      and Equity Earnings |   | $                                                | 132,025 |                                               | $      | 118,460                                      |   | $ | 142,199 |   | $ | 127,417 |   | $ | 114,341 |   | $ | 139,862 |   | $ |  68,616 |   |
| Fixed                      Charges (as below)                                                                                                              |   |                                             | 60,503  |                                               |   | 60,529                                       |   |   | 67,012 |   |   | 58,094 |   |   | 55,808 |   |   | 57,574 |   |   |  30,270 |   |
| **Total                      Earnings**                                                                                                                    |   | $                                                | 192,528 |                                               | $      | 178,989                                      |   | $ | 209,211 |   | $ | 185,511 |   | $ | 170,149 |   | $ | 197,436 |   | $ |  98,886 |   |
|                                                                                                                                                       |   |                                             |    |                                               |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                      CHARGES**                                                                                                                     |   |                                             |    |                                               |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                      Expense                                                                                                                      |   | $                                                | 57,581  |                                               | $      | 59,168                                       |   | $ | 64,105 |   | $ | 54,261 |   | $ | 50,089 |   | $ | 51,252 |   | $ |  26,844 |   |
| Credit                      for Allowance for Borrowed Funds                         Used During                      Construction     |   |                                             | 2,163   |                                               |   | 549                                          |   |   | 608 |   |   | 312 |   |   | 1,198 |   |   | 1,801 |   |   |  1,165 |   |
| Trust                      Dividends                                                                                                                       |   |                                             | -       |                                               |   | (268                                         | )      |   | (201 | ) |   | (179 | ) |   | (179 | )  |   | (179 | ) |  | (89 | )  |
| Estimated                      Interest Element in Lease                         Rentals                                                         |   |                                             | 759     |                                               |   | 1,080                                        |   |   | 2,500 |   |   | 3,700 |   |   | 4,700 |   |   | 4,700 |   |   |  2,350 |   |
| **Total                      Fixed Charges**                                                                                                               |   | $                                                | 60,503  |                                               | $      | 60,529                                       |   | $ | 67,012 |   | $ | 58,094 |   | $ | 55,808 |   | $ | 57,574 |   | $ |  30,270 |   |
|                                                                                                                                                       |   |                                             |    |                                               |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                      of Earnings to Fixed Charges**                                                                                                |   |                                             | 3.18    |                                               |   | 2.95                                         |   |   | 3.12 |   |   | 3.19 |   |   | 3.04 |   |   | 3.42 |   |   |  3.26 |   |