**KENTUCKY        POWER COMPANY **

**Computation        of 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 First Mortgage Bonds                                                                 |   | $                                                | 9,503  |                          | $      | 6,178 |   | $ | 2,206 |   | $ | - |   | $ | - |   | $ | - |   |
|   Interest                      on Other Long-term Debt                                                                 |   |                                             | 16,367 |                          |   | 18,300 |   |   | 23,429 |   |   | 26,467 |   |   | 27,051 |   |   | 26,747 |   |
|   Interest                      on Short-term Debt                                                                      |   |                                             | 3,295  |                          |   | 2,329 |   |   | 1,751 |   |   | 1,104 |   |   | 697 |   |   | 349 |   |
|   Miscellaneous                      Interest Charges                                                                   |   |                                             | 2,523  |                          |   | 1,059 |   |   | 1,084 |   |   | 1,772 |   |   | 1,956 |   |   | 2,025 |   |
|   Estimated                      Interest Element in Lease                      Rentals                                 |   |                                             | 1,700  |                          |   | 1,200 |   |   | 1,000 |   |   | 600 |   |   | 700 |   |   | 700 |   |
|                                                                                                                              |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **     Total                      Fixed                      Charges**                                   |   | $                                                | 33,388 |                          | $      | 29,066 |   | $ | 29,470 |   | $ | 29,943 |   | $ | 30,404 |   | $ | 29,821 |   |
|                                                                                                                              |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS**                                                                                                                      |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net                      Income Before Cumulative Effect of                          Accounting Change |   | $                                                | 20,763 |                          | $      | 21,565 |   | $ | 20,567 |   | $ | 33,464 |   | $ | 25,905 |   | $ | 22,556 |   |
|   Plus                      Federal Income Taxes                                                                        |   |                                             | 17,884 |                          |   | 9,553 |   |   | 9,235 |   |   | 9,764 |   |   | 8,974 |   |   | 6,248 |   |
|   Plus                      State Income Taxes (Credits)                                                                |   |                                             | 2,457  |                          |   | 489 |   |   | 1,627 |   |   | (89 | )  |   | (303 | ) |   | (540 | )  |
|   Plus                      Fixed Charges (as above)                                                                    |   |                                             | 33,388 |                          |   | 29,066 |   |   | 29,470 |   |   | 29,943 |   |   | 30,404 |   |   | 29,821 |   |
|                                                                                                                              |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **     Total                      Earnings**                                                             |   | $                                                | 74,492 |                          | $      | 60,673 |   | $ | 60,899 |   | $ | 73,082 |   | $ | 64,980 |   | $ | 58,085 |   |
|                                                                                                                              |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                      of Earnings to Fixed Charges**                                                                       |   |                                             | 2.23   |                          |   | 2.08 |   |   | 2.06 |   |   | 2.44 |   |   | 2.13 |   |   | 1.94 |   |
|                                                                                                                              |   |                                             |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |