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,
1992 1993 1994 1995 1996
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(Thousands of Dollars)
Earnings as Defined in Regulation S-K (A):
Net Income 475,936 614,868 659,406 616,964 535,071
Federal Income Taxes (B) 223,782 307,414 301,447 325,737 267,619
Fixed Charges 411,493 401,046 408,045 418,825 437,812
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Earnings 1,111,211 1,323,328 1,368,898 1,361,526 1,240,502
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Fixed Charges as Defined in Regulation S-K (C):
Total Interest Expense (D) 401,902 389,956 395,925 406,869 398,581
Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490
Subsidiaries' Preferred Securities Dividend
Requirements -- -- 27,741
-- --
Preferred Stock Dividends 31,907 38,114 42,147 49,426 23,161
Adjustment to Preferred Stock Dividends to
state on a pre-income tax basis 14,768 18,843 18,763 23,428 12,043
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Total Fixed Charges 458,168 458,003 468,955 491,679 473,016
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Ratio of Earnings to Fixed Charges 2.43 2.89 2.92 2.77 2.62
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Notes:
(A) The term "earnings" shall be defined as pretax income from continuing
operations. Add to pretax income the amount of fixed charges adjusted to
exclude (a) the amount of any interest capitalized during the period and
(b) the actual amount of any preferred stock dividend requirements of
majority-owned subsidiaries which were included in such fixed charges
amount but not deducted in the determination of pretax income.
(B) Includes state income taxes and federal income taxes for other income.
(C) 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 and preferred stock dividends, increased to
reflect the pre-tax earnings requirement for Public Service Electric and
Gas Company.
(D) Excludes 1992 interest expense on decommissioning cost $5,208.