EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS
12 Months
YEARS ENDED DECEMBER 31, Ended
---------------------------------------------------------------- September 30,
1990(A) 1991(A) 1992(A) 1993 1994 1995
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(THOUSANDS OF DOLLARS)
Net Income........................ $ 403,663 $ 543,035 $ 504,117 $ 595,519(A) $ 679,033 $ 641,884
Plus Income Taxes (B)............. 144,652 274,146 253,276 316,010 322,824 309,850
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Income Before Income Taxes........ 548,315 817,181 757,393 911,529 1,001,857 951,734
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Fixed Charges and Preferred
Securities Dividend Requirements:
Interest Charges (C)............ 457,017 478,321 524,025 502,534 495,925 502,094
Interest Factor in Rentals...... 9,162 9,311 9,591 11,090 12,120 12,057
Preferred Securities Dividend
Requirements (Pre-tax) (D).... 38,544 42,676 46,748 58,112 60,566 67,741
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Total................... 504,723 530,308 580,364 571,736 568,611 581,892
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Earnings Before Fixed Charges and
Preferred Securities Dividend
Requirements.................. $1,053,038 $1,347,489 $1,337,757 $1,483,265 $1,570,468 $1,533,626
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Ratio............................. 2.09 2.54 2.30 2.59 2.76 2.64
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(A) Excludes cumulative effect of $5.4 million credit to income reflecting a change in income taxes.
(See Note 9 -- Federal Income Taxes of Notes to Consolidated Financial Statements.)
(B) Includes state income taxes and federal income taxes for other incomes.
(C) Excludes 1991 and 1992 interest expense on decommissioning costs of $6,956 and $5,208, respectively.
Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission
guidelines.
(D) Includes a reduction for tax-deductible preferred dividends in accordance with Sections 244(a) and
11(b) of the Internal Revenue Code of 1986, as amended, before applying accounting Rule S-K of
Regulation 229.503, Item 503 (d)(6).