EXHIBIT 12.2
PSEG POWER LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Six Months Ended | Years Ended | |||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||
(Millions, except ratios) | ||||||||||||||||||||||||||||||
Earnings as Defined in Regulation S-K (A): | ||||||||||||||||||||||||||||||
Pre-tax Income (Loss) from Continuing Operations | $ | 377 | $ | (445 | ) | $ | (250 | ) | $ | (43 | ) | $ | 1,367 | $ | 1,251 | $ | 1,063 | |||||||||||||
(Income) Loss from Equity Investees, net of Distributions | (1 | ) | 1 | 4 | 7 | 1 | 3 | (10 | ) | |||||||||||||||||||||
Fixed Charges | 72 | 67 | 139 | 142 | 152 | 150 | 143 | |||||||||||||||||||||||
Capitalized Interest | (38 | ) | 42 | 9 | 11 | (1 | ) | 1 | 1 | |||||||||||||||||||||
Total Earnings | $ | 410 | $ | (335 | ) | $ | (98 | ) | $ | 117 | $ | 1,519 | $ | 1,405 | $ | 1,197 | ||||||||||||||
Fixed Charges as Defined in Regulation S-K (B) | ||||||||||||||||||||||||||||||
Interest Expense | $ | 66 | $ | 64 | $ | 128 | $ | 138 | $ | 148 | $ | 146 | $ | 139 | ||||||||||||||||
Interest Factor in Rentals | 6 | 3 | 11 | 4 | 4 | 4 | 4 | |||||||||||||||||||||||
Total Fixed Charges | $ | 72 | $ | 67 | $ | 139 | $ | 142 | $ | 152 | $ | 150 | $ | 143 | ||||||||||||||||
Ratio of Earnings to Fixed Charges (C) | 5.69 | (5.00 | ) | (0.71 | ) | 0.82 | 9.99 | 9.37 | 8.37 | |||||||||||||||||||||
(A) | The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity method investees plus distributed income from equity investees. Add to pre-tax income the amount of fixed charges adjusted to exclude the amount of any interest capitalized during the period. |
(B) | Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, and (c) an estimate of interest implicit in rentals. |
(C) | The ratio of earnings to fixed charges for the six months ended June 30, 2017, was (5.00), as noted above, which represents a deficiency of $402 million. The ratio of earnings to fixed charges for the year ended December 31, 2017, was (0.71), as noted above, which represents a deficiency of $237 million. The ratio of earnings to fixed charges for the year ended December 31, 2016, was 0.82, as noted above, which represents a deficiency of $25 million. |