EXHIBIT 12
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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For the Nine Months
Ended September 30,
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2001 2000
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Earnings as Defined in
Regulation S-K (A):
Net Income $208 $501
Income Taxes 84 333
Fixed Charges 359 336
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Earnings $651 $1,170
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Fixed Charges as Defined in
Regulation S-K (B):
Total Interest Expense $329 $294
Interest Factor in Rentals 8 8
Subsidiaries' Preferred Securities
Dividend Requirements 22 34
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Total Fixed Charges $359 $336
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Ratio of Earnings to Fixed Charges 1.81 3.48
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(A) The term "earnings" shall be defined as pretax income from continuing
operations. Add to pretax 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 stock dividend requirements of
majority-owned subsidiaries which were included in such fixed charges
amount but not deducted in the determination of pretax income.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized,
(including interest on the $2.525 billion of securitized debt) (b)
amortization of debt discount, premium and expense, (c) an estimate of
interest implicit in rentals, and (d) Preferred Securities Dividend
Requirements of subsidiaries.
EXHIBIT 12(A)
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
-------------------------
For the Nine Months
Ended September 30,
-------------------------
2001 2000
----------- ------------
Earnings as Defined in
Regulation S-K (A):
Net Income $208 $501
Income Taxes 84 333
Fixed Charges 359 336
----------- ------------
Earnings $651 $1,170
=========== ============
Fixed Charges as Defined in
Regulation S-K (B):
Total Interest Expense $329 $294
Interest Factor in Rentals 8 8
Subsidiaries' Preferred Securities
Dividend Requirements 22 34
Preferred Stock Dividends 4 7
Adjustment to Preferred Stock Dividends
to state on a pre-income tax basis 3 5
----------- ------------
Total Fixed Charges $366 $348
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Ratio of Earnings to Fixed Charges 1.78 3.36
=========== ============
(A) The term "earnings" shall be defined as pretax income from continuing
operations. Add to pretax 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 stock dividend requirements of
majority-owned subsidiaries which were included in such fixed charges
amount but not deducted in the determination of pretax income.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized,
(including interest on the $2.525 billion of securitized debt) (b)
amortization of debt discount, premium and expense, (c) an estimate of
interest implicit in rentals, and (d) preferred securities dividend
requirements of subsidiaries and preferred stock dividends, increased to
reflect the pre-tax earnings requirement for Public Service Electric and
Gas Company.