Exhibit 12.2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Plus Preferred Security Dividend Requirements
For the Six Months For the Years Ended
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 $ 203 $ 284 $ 583 $ 592 $ 376 $ 320 $ 324
Fixed Charges 171 173 349 369 397 415 469
Preferred Securities Pre Tax (3) (3) (7) (7) (7) (7) (8)
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Earnings $ 371 $ 454 $ 925 $ 954 $ 766 $ 728 $ 785
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Fixed Charges as Defined in Regulation S-K (B)
Interest Expense $ 168 $ 170 $ 342 $ 362 $ 390 $ 406 $ 458
Interest Factor in Rentals -- -- -- -- -- 2 3
Preferred Securities Dividends 2 2 4 4 4 4 5
Adjustment to state Preferred Securities
Dividends on a pre-income tax basis 1 1 3 3 3 3 3
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Total Fixed Charges $ 171 $ 173 $ 349 $ 369 $ 397 $ 415 $ 469
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Ratio of Earnings to Fixed Charges 2.17 2.62 2.65 2.59 1.93 1.76 1.67
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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.