EXHIBIT 12(B)
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS
12 Months
YEARS ENDED DECEMBER 31, Ended
------------------------------------------------------------- March 31,
1990 1991 1992 1993 1994 1995
---------- ---------- ---------- ---------- ---------- ---------
(THOUSANDS OF DOLLARS)
Net Income............................ $ 537,619 $ 545,479 $ 475,936 $ 614,868 $ 659,406 $ 644,863
Plus Income Taxes (A)................. 209,361 261,912 223,782 307,414 301,447 289,775
---------- ---------- --------- ---------- ---------- ----------
Income Before Income Taxes............ 746,980 807,391 699,718 922,282 960,853 934,638
---------- ---------- --------- ---------- ---------- ----------
Fixed Charges and Preferred Securities
Dividend Requirements:
Interest Charges (B)................ 346,020 358,517 401,902 389,956 395,925 404,026
Interest Factor in Rentals.......... 9,162 9,311 9,591 11,090 12,120 12,143
Preferred Securities Dividend
Requirements (Pre-tax) (C)........ 40,116 42,703 46,675 56,957 60,910 62,715
---------- ---------- --------- ---------- ---------- ----------
Total....................... 395,298 410,531 458,168 458,003 468,955 478,884
---------- ---------- --------- ---------- ---------- ----------
Earnings Before Fixed Charges and
Preferred Securities Dividend
Requirements........................ $1,102,162 $1,175,219 $1,111,211 $1,323,328 $1,368,898 $1,350,807
========== ========== ========== ========== ========== ==========
Ratio................................. 2.79 2.86 2.43 2.89 2.92 2.82
==== ==== ==== ==== ==== ====
(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 (d)(6).