EXHIBIT 12
PSEG ENERGY HOLDINGS INC.
Computation of Ratios of Earnings to Fixed Charges
Nine Months
Ended Years Ended December 31,
September 30, ---------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
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Earnings as Defined in
Regulation S--K (A):
Pre-tax income from Continuing
Operations ............................. $ 125,477 $ 97,560 $ 73,450 $ 73,370 $ 70,646 $ 68,642
(Income)/Loss from equity
investees net of distributions ......... 2,543 7,796 (35,318) 49,718 13,107 21,968
Fixed Charges ............................ 69,949 95,556 79,351 60,714 60,761 67,983
Amortization of capitalized
interest ................................. 1,587 2,049 1,990 1,737 1,672 1,577
Capitalized interest ..................... (2,547) (1,181) (5,065) (1,301) (1,896) (4,480)
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Earnings ................................. $ 197,009 $ 201,780 $ 114,408 $ 184,238 $ 144,290 $ 155,690
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Fixed Charges as Defined in
Regulation S--K (B):
Total interest expensed and
capitalized ............................ $ 68,064 $ 93,168 $ 77,428 $ 59,562 $ 58,790 $ 66,279
Interest in rental expense ............... 1,885 2,388 1,923 1,152 1,971 1,704
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Total Fixed Charges ...................... $ 69,949 $ 95,556 $ 79,351 $ 60,714 $ 60,761 $ 67,983
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Ratio of Earnings to Fixed
Charges ................................ 2.82 2.11 1.44 3.03 2.37 2.29
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(A) The term "earnings" shall be defined as pre-tax income from continuing
operations before adjustment for minority interests or income or loss from
equity investees. Add fixed charges adjusted to exclude and (a) the amount
of any interest capitalized during the period, (b) amortization of
capitalized interest and (c) distributed income of equity investees. From
the total, subtract interest capitalized.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b)
amortization of debt discount, premium and expense, and (c) an estimate of
interest implicit in rentals.