**KENTUCKY        POWER COMPANY**

**Computation        of 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                                                                                              |   | $                                              | 31,607 |                                             | $      | 31,429             |                       | $                  | 43,139 |   | $ | 34,576 |   | $ | 32,945 |   | $ | 37,832 |   | $ |  21,714 |   |
| Fixed                    Charges (as below)                                                                                                |   |                                           | 29,066 |                                             |   | 29,470             |                       |               | 29,943 |   |   | 30,404 |   |   | 29,928 |   |   | 30,141 |   |   |  15,107 |   |
| **Total                    Earnings**                                                                                                      |   | $                                              | 60,673 |                                             | $      | 60,899             |                       | $                  | 73,082 |   | $ | 64,980 |   | $ | 62,873 |   | $ | 67,973 |   | $ |  36,821 |   |
|                                                                                                                                       |   |                                           |   |                                             |   |               |                       |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                    CHARGES**                                                                                                       |   |                                           |   |                                             |   |               |                       |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    Expense                                                                                                        |   | $                                              | 27,361 |                                             | $      | 26,836             |                       | $                  | 28,620 |   | $ | 29,470 |   | $ | 29,071 |   | $ | 29,369 |   | $ |  14,736 |   |
| Credit                    for Allowance for Borrowed Funds                      Used During                    Construction |   |                                           | 505    |                                             |   | 1,634              |                       |               | 723 |   |   | 234 |   |   | 257 |   |   | 172 |   |   |  71 |   |
| Estimated                    Interest Element in Lease                       Rentals                                        |   |                                           | 1,200  |                                             |   | 1,000              |                       |               | 600 |   |   | 700 |   |   | 600 |   |   | 600 |   |   |  300 |   |
| **Total                    Fixed Charges**                                                                                                 |   | $                                              | 29,066 |                                             | $      | 29,470             |                       | $                  | 29,943 |   | $ | 30,404 |   | $ | 29,928 |   | $ | 30,141 |   | $ |  15,107 |   |
|                                                                                                                                       |   |                                           |   |                                             |   |               |                       |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                    of Earnings to Fixed Charges**                                                                                  |   |                                           | 2.08   |                                             |   | 2.06               |                       |               | 2.44 |   |   | 2.13 |   |   | 2.10 |   |   | 2.25 |   |   |  2.43 |   |