Public Service Enterprise (PEG) 10-Q 2016 Q2 Quarterly report

EXHIBIT 12.1

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,
	2016			2015				2015			2014			2013			2012			2011
	(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations	$	690		$	670			$	1,257		$	1,174		$	993		$	835		$	861
Fixed Charges	154			148				306			303			316			314			319
Capitalized Interest	(7		)	(8		)		(17		)	(16		)	(16		)	(13		)	(4		)
Total Earnings	$	837		$	810			$	1,546		$	1,461		$	1,293		$	1,136		$	1,176
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense	$	149		$	144			$	297		$	293		$	309		$	308		$	314
Interest Factor in Rentals	5			4				9			10			7			6			5
Total Fixed Charges	$	154		$	148			$	306		$	303		$	316		$	314		$	319
							��
Ratio of Earnings to Fixed Charges	5.44			5.47				5.05			4.82			4.09			3.62			3.69

(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 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, (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. There were no preferred stock dividend requirements for any period presented.