Exhibit 12
PSEG ENERGY HOLDINGS L.L.C.(A)
Computation of Ratios of Earnings to Fixed Charges
(thousands of dollars)
For the Six Months Year ended Year ended Year ended Year ended Year ended
Ended June 30, December 31, December 31, December 31, December 31, December 31,
2002 2001 2001 2000 1999 1998 1997
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Earnings as Defined in
Regulation S--K (B):
Pre-tax income from Continuing
Operations ...................... (487,757) 97,780 247,450 171,443 178,411 102,660 84,867
(Income)/Loss from equity
investees net of distributions .. (14,455) (32,415) (91,199) 10,341 80,995 47,182 (14,534)
Fixed Charges ..................... 113,605 84,098 198,837 157,470 105,840 93,936 76,505
Amortization of capitalized
interest ........................ 445 159 647 235 2,104 2,543 1,257
Capitalized interest .............. (4,881) (10,262) (16,127) (20,760) (8,484) (1,181) (5,065)
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Earnings .......................... (393,042) 139,360 339,608 318,729 358,866 245,140 143,030
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Fixed Charges as Defined in
Regulation S--K (C):
Total interest expensed and
capitalized ..................... 112,158 82,606 195,899 154,648 102,917 91,548 74,582
Interest in rental expense ........ 1,447 1,492 2,938 2,822 2,923 2,388 1,923
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Total Fixed Charges ............... 113,605 84,098 198,837 157,470 105,840 93,936 76,505
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Ratio of Earnings to Fixed
Charges ......................... (3.46) 1.66 1.71 2.02 3.39 2.61 1.87
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(A) PSEG Energy Holdings L.L.C. is the successor to PSEG Energy Holdings Inc.
On October 1, 2002 PSEG Energy Holdings Inc. was merged into PSEG Energy
Holdings L.L.C.
(B) 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 (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.
(C) 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.