EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
For the Six
Months Ended For the Years Ended
June 30, December 31,
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2006 2005 2005 2004 2003 2002 2001
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(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations $ 335 $ 600 $ 1,399 $1,237 $1,324 $ 659 $1,139
(Income) Loss from Equity Investees, net of
Distributions (31) (10) (28) 78 60 (2) (59)
Fixed Charges 446 459 931 928 963 946 876
Capitalized Interest (B) (28) (52) (92) (109) (116) (104) (74)
Preferred Securities Dividend Requirements
of Subsidiaries (3) (7) (6) (6) (6) (6) (8)
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Total Earnings $ 722 $ 997 $ 2,204 $2,128 $2,225 $1,493 $1,874
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Fixed Charges as Defined in Regulation S-K (C)
Interest Expense $ 441 $ 454 $ 915 $ 913 $ 949 $ 926 $ 852
Interest Factor in Rentals 5 5 10 9 8 14 16
Preferred Securities Dividend Requirements
of Subsidiaries 3 7 6 6 6 6 8
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Total Fixed Charges $ 449 $ 466 $ 931 $ 928 $ 963 $ 946 $ 876
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Ratio of Earnings to Fixed Charges 1.61 2.14 2.37 2.29 2.31 1.58 2.14
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(A) The term "earnings" shall be defined as pre-tax 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 and (b) the actual amount of any preferred securities
dividend requirements of majority-owned subsidiaries stated on a pre-tax
level.
(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 and (d) preferred securities dividend
requirements of majority-owned subsidiaries stated on a pre-tax level.
(C) Capitalized Interest excludes AFUDC for PSE&G.