EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Years Ended December 31,
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1997 1998 1999 2000 2001
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Earnings as Defined in Regulation S-K (A):
Pre-tax (Loss) Income from Continuing Operations $ 870 $1,090 $1,305 $1,272 $1,157
(Income)/Loss from Equity Investees Net
of Distributions (14) 47 81 10 (92)
Fixed Charges 543 577 615 719 872
Preference Security Dividend Requirements of
Consolidated Statements (44) (71) (85) (85) (67)
Preferred Securities Dividend Requirements of
Consolidated Subsidiaries (PSEG Capital Trust) (18) (14) (14) (14) (8)
AFUDC/Capitalized Interest (20) (11) (16) (36) (82)
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Earnings $1,317 $1,618 $1,886 $1,866 $1,780
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Fixed Charges as Defined in Regulation S-K (B):
Total Interest Expense $470 $481 $506 $610 $787
Interest Factor in Rentals 11 11 10 10 10
Preferred Securities Dividend Requirements of
Consolidated Subsidiaries 44 71 85 85 67
Preferred Securities Dividend Requirements of
Consolidatd Subsidiaries (PSEG Capital Trust) -
Recorded Net of Tax on I/S 12 9 9 9 5
Adjustment to Preferred Securities Dividends
Requirements (PSEG Capital Trust) to state
on a pre-income tax basis 6 5 5 5 3
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Total Fixed Charges $543 $577 $615 $719 $872
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Ratio of Earnings to Fixed Charges 2.43 2.80 3.07 2.60 2.04
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Notes:
(A) The term "earnings" shall be defined as pre-tax income from continuing
operations. Add to pre-tax 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 securities requirements of majority
owned subsidiaries.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized,
including interest on the securitized debt (b) amortization of debt
discount, premium and expense, (c) an estimate of interest implicit in
rentals, and (d) preferred securities requirements of majority owned
subsidiaries.