EXHIBIT 12.2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS
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 $204 $219 $592 $376 $320 $324 $994
Fixed Charges 86 98 369 397 415 469 462
Preferred Securities Dividends, pre-tax (2) (2) (7) (7) (7) (8) (15)
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Total Earnings
$288 $315 $954 $766 $728 $785 $1,441
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Fixed Charges as Defined in
Regulation S-K (B)
Interest Expense $84 $96 $362 $390 $406 $458 $444
Interest Factor in Rentals - - - - 2 3 3
Preferred Securities Dividends 1 1 4 4 4 5 9
Adjustment to state Preferred Securities
Dividends on a pre-income tax basis 1 1 3 3 3 3 6
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Total Fixed Charges $86 $98 $369 $397 $415 $469 $462
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Ratio of Earnings to Fixed Charges 3.35 3.21 2.59 1.93 1.75 1.67 3.12
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(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 (b)
the actual amount of any preferred securities dividend requirements of
majority owned subsidiaries (c) preferred stock dividends which were
included in such fixed charges amount but not deducted in the determination
of pre-tax income.
(B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b)
amortization of debt discount and premium expense (c) an estimate of
interest implicit in rentals and (d) preferred securities dividend
requirements of majority owned subsidiaries and preferred stock dividends,
increased to reflect the pre-tax earnings requirement for PSE&G.