1 EXHIBIT 12 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS YEAR ENDED DECEMBER 31, ------------------------------------------------------------- 1989(A) 1990(A) 1991(A) 1992 1993 --------- --------- --------- --------- --------- (THOUSANDS OF DOLLARS) Net Income....................... $ 523,435 $ 403,662 $ 543,035 $ 504,117 $ 595,519(A) Plus Income Taxes................ 207,644 144,652 274,146 253,276 316,010 --------- --------- --------- --------- --------- Net Income Before Income Taxes... 731,079 548,314 817,181 757,393 911,529 --------- --------- --------- --------- --------- Fixed Charges and Preferred Stock Dividend Requirements: Interest Charges............... 408,661 457,017 478,321 524,025 502,534 Interest Factor in Rentals..... 8,908 9,162 9,311 9,591 11,090 Preferred Stock Dividend Requirements (Pre-tax)...... 39,729 38,544 42,676 46,748 58,112 --------- --------- --------- --------- --------- Total.................. 457,298 504,723 530,308 580,364 571,736 --------- --------- --------- --------- --------- Earnings Before Fixed Charges and Preferred Stock Dividend Requirements................... $1,188,377 $1,053,037 $1,347,489 $1,337,757 $1,483,265 --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- Ratio............................ 2.60 2.09 2.54 2.30 2.59 (A) Excludes cumulative effect of $5.4 million change in accounting for EDHI's income taxes. (See Note 9 -- Federal Income Taxes of Notes to Consolidated Financial Statements.) 1