EXHIBIT 12

                           PSEG POWER LLC
          COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



                                           -------------------------
                                             For the Nine Months
                                             Ended September 30,
                                           -------------------------
                                              2001         2000
                                           -----------  ------------

Earnings as Defined in Regulation S-K (A):

Net Income                                       $292          $249
Income Taxes                                      199           172
Fixed Charges                                     159           103
                                           -----------  ------------
Earnings                                         $650          $524
                                           ===========  ============

Fixed Charges as Defined in
Regulation S-K (B):                              $159          $103


Ratio of Earnings to Fixed Charges               4.09          5.09
                                           ===========  ============

(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 (b)
     amortization of debt discount, premium and expense.