EXHIBIT 12

                           PSEG POWER LLC
          COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



                                           -------------------------
                                              For the Six Months
                                                Ended June 30,
                                           -------------------------
                                               2002         2001
                                           -----------  ------------

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

Pre-tax Income from Continuing Operations        $344          $346
Fixed Charges                                     100           116
Capitalized Interest                              (43)          (24)
                                           -----------  ------------
Earnings                                         $401          $438
                                           ===========  ============

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

Interest Expense                                  $99          $113
Interest Factor in Rentals                          1             3
                                           -----------  ------------
Total Fixed Charges                              $100          $116
                                           ===========  ============

Ratio of Earnings to Fixed Charges               4.01          3.78
                                           ===========  ============

(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 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 and (c) an estimate of
     interest implicit in rentals.