**APPALACHIAN        POWER COMPANY AND SUBSIDIARIES**

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

**(in        thousands except ratio data)**

|                                                                                                            |   | **Year                  Ended December 31,** |    |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                            |   | **2001**                                     |    | **2002** |   | **2003** |   | **2004** |   | **2005** |   |
| **EARNINGS**                                                                                                    |   |                                    |    |    |   |    |   |    |   |    |   |
| Income                    Before Income Taxes                                                                   |   | $                                            | 258,541 |   | $ | 316,418 |   | $ | 308,003 |   | $ | 238,226 |   | $ | 202,021 |   |
| Fixed                Charges (as below)                                                                         |   |                                         | 130,293 |   |   | 126,797 |   |   | 123,721 |   |   | 110,547 |   |   | 118,365 |   |
| **Total                  Earnings**                                                                             |   | $                                            | 388,834 |   | $ | 443,215 |   | $ | 431,724 |   | $ | 348,773 |   | $ | 320,386 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FIXED                  CHARGES**                                                                              |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  Expense                                                                               |   | $                                            | 120,036 |   | $ | 116,677 |   | $ | 115,202 |   | $ | 99,135 |   | $ | 106,301 |   |
| Credit                  for Allowance for Borrowed Funds Used                     During Construction |   |                                         | 4,457   |   |   | 5,620 |   |   | 5,319 |   |   | 8,100 |   |   | 8,764 |   |
| Interest Rate Hedges                                                                                            |   |                                         |  - |   |   | - |   |   | - |   |   | (188 | )  |   | -  |   |
| Estimated                Interest Element in Lease Rentals                                                      |   |                                         | 5,800   |   |   | 4,500 |   |   | 3,200 |   |   | 3,500 |   |   | 3,300 |   |
| **Total                  Fixed Charges**                                                                        |   | $                                            | 130,293 |   | $ | 126,797 |   | $ | 123,721 |   | $ | 110,547 |   | $ | 118,365 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                  of Earnings to Fixed Charges**                                                         |   |                                         | 2.98    |   |   | 3.49 |   |   | 3.48 |   |   | 3.15 |   |   | 2.70 |   |