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
-------------------------------------------------------------- June 30,
1991 1992 1993 1994 1995 1996
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(THOUSANDS OF DOLLARS)
Earnings as Defined in Regulation
S-K:
Net Income ......................... 545,479 475,936 614,868 659,406 616,964 591,185
Federal Income Taxes (A) ........... 261,912 223,782 307,414 301,447 325,737 312,888
Fixed Charges ...................... 367,828 411,493 401,046 408,045 418,825 435,886
Earnings ........................... 1,175,219 1,111,211 1,323,328 1,368,898 1,361,526 1,339,959
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Fixed Charges as Defined in
Regulation S-K (B):
Total Interest Expense (C) ......... 358,517 401,902 389,956 395,925 406,869 406,033
Interest Factor in Rentals ......... 9,311 9,591 11,090 12,120 11,956 11,790
Subsidiaries' Preferred Stock
Dividend Requirements ............ -- -- -- -- -- 18,063
Preferred Stock Dividends .......... 29,012 31,907 38,114 42,147 49,426 31,389
Adjustment to preferred and preference
stock dividends tp state on a
pre-income tax basis ............. 13,691 14,768 18,843 18,763 23,428 16,564
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Total Fixed Charges ...... 410,531 458,168 458,003 468,955 491,679 483,839
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Ratio of Earnings to Fixed
Charges .......................... 2.86 2.43 2.89 2.92 2.77 2.77
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(A) Includes state income taxes and federal income taxes for other income.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount,
premium and expense, (c) an estimate of interest implicit in rentals, and (d) preferred securities dividend
requirements of Subsidiaries, increased to reflect the pre-tax earnings requirement for Public Service
Electric and Gas Company.
(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.