Public Service Enterprise (PEG) 10-Q 2015 Q2 Quarterly report

EXHIBIT 12.2

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Plus Preferred Security Dividend Requirements

	Six Months Ended						Years Ended
	June 30,						December 31,
	2015			2014			2014			2013			2012			2011			2010
	(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations	$	670		$	594		$	1,174		$	993		$	835		$	861		$	591
Fixed Charges	148			150			303			316			314			319			327
Capitalized Interest	(8		)	(9		)	(16		)	(16		)	(13		)	(4		)	(2		)
Preferred Securities Dividend Requirements	—			—			—			—			—			—			(2		)
Total Earnings	$	810		$	735		$	1,461		$	1,293		$	1,136		$	1,176		$	914
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense	$	144		$	144		$	293		$	309		$	308		$	314		$	320
Interest Factor in Rentals	4			6			10			7			6			5			5
Preferred Securities Dividend	—			—			—			—			—			—			1
Adjustments to state Preferred Securities Dividends on a pre-income tax basis	—			—			—			—			—			—			1
Total Fixed Charges	$	148		$	150		$	303		$	316		$	314		$	319		$	327
Ratio of Earnings to Fixed Charges	5.47			4.90			4.82			4.09			3.62			3.69			2.80

(A) The term "earnings" shall be defined as pre-tax income from continuing operations. Add to pre-tax income the amount of fixed charges adjusted to exclude (a) the amount of any interest capitalized during the period, (b) the actual amount of any preferred securities dividend requirements of majority owned subsidiaries, and (c) preferred stock dividends which were included in such fixed charges amount but not deducted in the determination of pre-tax income.

(B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount and premium expense (c) an estimate of interest implicit in rentals, and (d) preferred securities dividend requirements of majority owned subsidiaries and preferred stock dividends, increased to reflect the pre-tax earnings requirement for PSE&G.