EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
For the Three
Months Ended For the Years Ended
March 31, December 31,
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2005 2004 2004 2003 2002 2001 2000
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(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations $453 $451 $1,167 $1,316 $659 $1,139 $1,279
Loss(Income) from Equity Investees, Net of
Distributions (2) 9 78 60 (2) (59) (16)
Fixed Charges 247 259 988 970 946 876 726
Capitalized Interest (B) (26) (32) (110) (116) (104) (74) (33)
Preferred Securities Dividends Requirements
of Subsidiaries (2) (2) (6) (6) (6) (8) (14)
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Total Earnings $670 $685 $2,117 $2,224 $1,493 $1,874 $1,942
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Fixed Charges as Defined in
Regulation S-K (C)
Interest Expense $242 $255 $974 $956 $926 $852 $698
Interest Factor in Rentals 3 2 8 8 14 16 14
Preferred Securities Dividends Requirements
of Subsidiaries 2 2 6 6 6 8 14
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Total Fixed Charges $247 $259 $988 $970 $946 $876 $726
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Ratio of Earnings to Fixed Charges 2.71 2.64 2.14 2.29 1.58 2.14 2.67
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(A) The term "earnings" shall be defined as pretax income from continuing
operations before income or loss from equity investees plus distributed
income from equity investees. 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 securities
dividend requirements of majority-owned subsidiaries stated on a pre-tax
level.
(B) Capitalized Interest excludes AFUDC for PSE&G.
(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 dividends
requirements of majority-owned subsidiaries stated on a pre-tax level.