EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS
12 Months
YEARS ENDED DECEMBER 31, Ended
--------------------------------------------------- March 31,
1991(A) 1992(A) 1993(A) 1994 1995 1996
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(THOUSANDS OF DOLLARS)
Net Income...................... $ 543,035 $ 504,117 $ 595,519(A) $ 679,033 $ 662,323 $ 643,835
Plus Income Taxes (B)........... 274,146 253,276 316,010 322,824 364,355 358,938
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Income Before Income Taxes....... 817,181 757,393 911,529 1,001,857 1,026,678 1,002,773
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Fixed Charges and Preferred
Securities Dividend Requirements:
Interest Charges (C)........... 478,321 524,025 502,534 495,925 496,060 496,137
Interest Factor in Rentals..... 9,311 9,591 11,090 12,120 11,956 11,891
Preferred Securities Dividend
Requirements (Pre-tax) (D)... 42,676 46,748 56,881 60,566 72,416 72,520
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Total.................. 530,308 580,364 570,505 568,611 580,432 580,548
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Earnings Before Fixed Charges and
Preferred Securities Dividend
Requirements................$1,347,489 $1,337,757 $1,482,034 $1,570,468 $1,607,110 $1,583,321
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Ratio........................... 2.54 2.30 2.59 2.76 2.77 2.73
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(A) Excludes cumulative effect of $5.4 million credit to income reflecting a change in income taxes.
(See Note 9 -- Federal Income Taxes of Notes to Consolidated Financial Statements.)
(B) Includes state income taxes and federal income taxes for other incomes.
(C) 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.
(D) 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).