EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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For the Quarters Ended
March 31,
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2002 2001
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Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations $294 $407
Fixed Charges 237 205
Capitalized Interest (24) (12)
Preference Security Dividend Requirements of Consolidated
Subsidiaries (13) (21)
(Income)/Loss from Equity Investees Net of Distributions (5) (16)
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Earnings $489 $563
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Fixed Charges as Defined in Regulation S-K (B):
Total Interest Expense $219 $176
Interest Factor in Rentals 3 3
Preferred Securities Dividend Requirements 13 21
Preferred Stock Dividends 1 3
Adjustment to Preferred Stock Dividends to
state on a pre-income tax basis 1 2
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Total Fixed Charges $237 $205
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Ratio of Earnings to Fixed Charges 2.06 2.75
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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 and
distributed income from equity investees and losses from equity investees
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, (c) preferred stock dividends
which were included in such fixed charges amount but not deducted in the
determination of pretax income, and (d) income from equity investees.
(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 subsidiaries and preferred stock dividends, increased to
reflect the pre-tax earnings requirement for Public Service Enterprise
Group Incorporated.