EXHIBIT 12.4 PSEG ENERGY HOLDINGS L.L.C. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES FOR THE NINE MONTHS ENDED FOR THE YEARS ENDED SEPTEMBER 30, DECEMBER 31, -------------------------------------------------------------------------------- 2005 2004 2004 2003 2002 2001 2000 ================================================================================ (MILLIONS, EXCEPT RATIOS) Earnings as Defined in Regulation S-K (A): Pre-tax Income from Continuing Operations $ 186 $ 142 $ 185 $ 261 $ (365) $ 237 $ 183 (Income)/Loss from Equity Investees, Net of Distributions (23) 79 78 60 (2) (59) (16) Fixed Charges 194 196 260 231 231 199 161 Capitalized Interest (1) (1) (2) (10) (12) (13) (21) -------------------------------------------------------------------------------- Total Earnings $ 356 $ 416 $ 521 $ 542 $ (148) $ 364 $ 307 ================================================================================ Fixed Charges as Defined in Regulation S-K (B) Interest Expense $ 194 $ 195 $ 259 $ 230 $ 229 $ 196 $ 158 Interest Factor in Rentals 1 1 1 1 2 3 3 -------------------------------------------------------------------------------- Total Fixed Charges $ 195 $ 196 $ 260 $ 231 $ 231 $ 199 $ 161 ================================================================================ Ratio of Earnings to Fixed Charges (C) 1.83 2.12 2.00 2.35 (0.64) 1.83 1.91 ================================================================================ (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 pre-tax income the amount of fixed charges adjusted to exclude (a) 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 (c) an estimate of interest implicit in rentals. (C) The ratio of earnings to fixed charges for the year ended December 31, 2002 was (0.64), as noted above, which represents a deficiency of $379 million.