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,
-------------------------------------------------------------
1991 1992 1993 1994 1995
---------- ---------- ---------- ---------- ----------
(THOUSANDS OF DOLLARS)
Net Income................................$ 545,479 $ 475,936 $ 614,868 $ 659,406 $ 616,964
Plus Income Taxes (A)..................... 261,912 223,782 307,414 301,447 325,737
---------- ---------- --------- ---------- ----------
Income Before Income Taxes................ 807,391 699,718 922,282 960,853 942,701
---------- ---------- --------- ---------- ----------
Fixed Charges and Preferred Securities
Dividend Requirements:
Interest Charges (B).................... 358,517 401,902 389,956 395,925 406,869
Interest Factor in Rentals.............. 9,311 9,591 11,090 12,120 11,956
Preferred Securities Dividend
Requirements (Pre-tax) (C)............ 42,703 46,675 56,957 60,910 72,854
---------- ---------- --------- ---------- ----------
Total........................... 410,531 458,168 458,003 468,955 491,679
---------- ---------- --------- ---------- ----------
Earnings Before Fixed Charges and
Preferred Securities Dividend
Requirements............................$1,175,219 $1,111,211 $1,323,328 $1,368,898 $1,361,526
========== ========== ========== ========== ==========
Ratio................................ 2.86 2.43 2.89 2.92 2.77
==== ==== ==== ==== ====
(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).