EXHIBIT 12(B)
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS
YEARS ENDED DECEMBER 31,
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1990 1991 1992 1993 1994
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(THOUSANDS OF DOLLARS)
Net Income................................ $ 537,619 $ 545,479 $ 475,936 $ 614,868 $ 659,406
Plus Income Taxes (A)..................... 209,361 261,912 223,782 307,414 301,447
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Income Before Income Taxes................ 746,980 807,391 699,718 922,282 960,853
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Fixed Charges and Preferred Securities
Dividend Requirements:
Interest Charges (B).................... 346,020 358,517 401,902 389,956 395,925
Interest Factor in Rentals.............. 9,162 9,311 9,591 11,090 12,120
Preferred Securities Dividend
Requirements (Pre-tax) (C)............ 40,116 42,703 46,675 56,957 60,981
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Total........................... 395,298 410,531 458,168 458,003 469,026
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Earnings Before Fixed Charges and
Preferred Securities Dividend
Requirements............................ $1,102,162 $1,175,219 $1,111,211 $1,313,328 $1,368,898
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Ratio................................ 2.79 2.86 2.43 2.89 2.92
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(A) Includes state income taxes and federal income taxes for other income.
(B) Excludes 1991 and 1992 interest expense on decommissioning costs of $6,956 and $5,208, respectively.
Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission
guidelines.
(C) Includes a reduction for tax-deductible preferred dividends in accordance with Sections 244(a) and
11(b) of the Internal Revenue Code of 1986, as amended, before applying accounting Rule S-K of
Regulation 229.503. Item 503(6).