Pseg Power 10-Q 2010 Q3 Quarterly report

EXHIBIT 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	For the Nine Months Ended September 30,						For the Years Ended December 31,
	2010			2009			2009			2008			2007			2006			2005
	(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations	$	2,148		$	2,124		$	2,636		$	1,909		$	2,389		$	1,130		$	1,391
(Income) Loss from Equity Investees, net of Distributions		(17	)		(16	)		(25	)		(5	)		(10	)		(33	)		(31	)
Fixed Charges		417			454			591			648			770			838			874
Capitalized Interest (B)		(49	)		(32	)		(45	)		(36	)		(26	)		(33	)		(92	)
Preferred Securities Dividend Requirements of Subsidiaries		(2	)		(5	)		(6	)		(6	)		(6	)		(6	)		(6	)
Total Earnings	$	2,497		$	2,525		$	3,151		$	2,510		$	3,117		$	1,896		$	2,136
Fixed Charges as Defined in Regulation S-K (C)
Interest Expense	$	405		$	439		$	572		$	630		$	753		$	821		$	858
Interest Factor in Rentals		10			10			13			12			11			11			10
Preferred Securities Dividend Requirements of Subsidiaries		2			5			6			6			6			6			6
Total Fixed Charges	$	417		$	454		$	591		$	648		$	770		$	838		$	874
Ratio of Earnings to Fixed Charges		5.99			5.56			5.33			3.87			4.05			2.26			2.44

(A) The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity investees plus distributed income from equity investees. Add to pre-tax income the amount of fixed charges adjusted to exclude (a) the amount of any interest capitalized during the period and (b) the actual amount of any preferred securities dividend requirements of majority-owned subsidiaries stated on a pre-tax level.

(B) Capitalized Interest excludes AFUDC for PSE&G.

(C) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals and (d) preferred securities dividend requirements of majority-owned subsidiaries stated on a pre-tax level.