EXHIBIT 12.1
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
For the Nine
Months Ended For the Years Ended
September 30, December 31,
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2004 2003 2003 2002 2001 2000 1999
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(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations $ 476 $ 278 $ 376 $ 320 $ 324 $ 994 $1,163
Fixed Charges 273 293 390 408 461 447 442
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Total Earnings $ 749 $ 571 $ 766 $ 728 $ 785 $1,441 $1,605
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Fixed Charges as Defined in Regulation S-K (B)
Interest Expense $ 273 $ 290 $ 390 $ 406 $ 458 $ 444 $ 440
Interest Factor in Rentals -- 3 -- 2 3 3 2
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Total Fixed Charges $ 273 $ 293 $ 390 $ 408 $ 461 $ 447 $ 442
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Ratio of Earnings to Fixed Charges 2.74 1.95 1.96 1.78 1.70 3.22 3.63
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(A) The term "earnings" shall be defined as pre-tax income from continuing
operations. Add to pre-tax income the amount of fixed charges adjusted to
exclude the amount of any interest capitalized during the period.
(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.