**KENTUCKY        POWER COMPANY**

**Computation        of Ratios of Earnings to Fixed Charges **

**(in        thousands except ratio data)**

|                                                                                                                 |   |                                           |   |         | **Twelve** |         |   | **Three**    |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------------|------------|--------------|--------|--------------|--------|
|                                                                                                                 |   |                                           |   |         | **Months** |         |   | **Months**   |   |
|                                                                                                                 |   | **Year                    Ended December 31,** |   |         | **Ended**  |         |   | **Ended**    |   |
|                                                                                                                 |   | **2002**                                       |   | **2003**     |       | **2004**     |   | **2005**     |   | **2006** |   |   |  **3/31/2007** |   |   | **3/31/2007** |   |
| **EARNINGS**                                                                                                         |   |                                      |   |    |       |    |   |    |   |    |   |   |   |   |   |   |   |
| Income                  Before Income Taxes                                                                          |   | $                                              | 31,429 |         | $          | 43,139       |   | $            | 34,576 |   | $ | 32,945 |   | $ | 53,690 |   | $ |  61,845 |   | $ |  23,650 |   |
| Fixed                Charges (as below)                                                                              |   |                                           | 29,470 |         |       | 29,943       |   |         | 30,404 |   |   | 29,928 |   |   | 30,288 |   |   |  30,059 |   |   |  7,437 |   |
| **Total                  Earnings**                                                                                  |   | $                                              | 60,899 |         | $          | 73,082       |   | $            | 64,980 |   | $ | 62,873 |   | $ | 83,978 |   | $ |  91,904 |   | $ |  31,087 |   |
|                                                                                                                 |   |                                           |   |         |       |         |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                  CHARGES**                                                                                   |   |                                           |   |         |       |         |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  Expense                                                                                    |   | $                                              | 26,836 |         | $          | 28,620       |   | $            | 29,470 |   | $ | 29,071 |   | $ | 28,832 |   | $ |  28,547 |   | $ |  7,011 |   |
| Credit                  for Allowance for Borrowed Funds Used                     During Construction |   |                                           | 1,634  |         |       | 723          |   |         | 234    |   |   | 257 |   |   | 656 |   |   |  712 |   |   |  226 |   |
| Estimated                Interest Element in Lease Rentals                                                           |   |                                           | 1,000  |         |       | 600          |   |         | 700    |   |   | 600 |   |   | 800 |   |   |  800 |   |   |  200 |   |
| **Total                  Fixed Charges**                                                                             |   | $                                              | 29,470 |         | $          | 29,943       |   | $            | 30,404 |   | $ | 29,928 |   | $ | 30,288 |   | $ |  30,059 |   | $ |  7,437 |   |
|                                                                                                                 |   |                                           |   |         |       |         |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                  of Earnings to Fixed Charges**                                                              |   |                                           | 2.06   |         |       | 2.44         |   |         | 2.13   |   |   | 2.10 |   |   | 2.77 |   |   |  3.05 |   |   |  4.18 |   |