EXHIBIT 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Years Ended December 31,
--------------------------------------------------------
1998 1999 2000 2001 2002
------- ------- ------- ------- -------
(millions)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations $ 1,077 $ 1,288 $ 1,272 $ 1,157 $ 664
Loss/(Income) from Equity Investees, Net of
Distributions 28 9 (11) (74) 11
Fixed Charges 577 615 718 894 966
Capitalized Interest and AFUDC (11) (16) (33) (81) (109)
Preferred Securities Dividends Requirements
of Subsidiaries (85) (99) (100) (75) (60)
======= ======= ======= ======= =======
Earnings $ 1,586 $ 1,797 $ 1,846 $ 1,821 $ 1,472
======= ======= ======= ======= =======
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense 481 506 604 803 892
Interest Factor in Rentals 11 10 14 16 14
Preferred Securities Dividends Requirements
of Subsidiaries 85 99 100 75 60
Total Fixed Charges $ 577 $ 615 $ 718 $ 894 $ 966
======= ======= ======= ======= =======
Ratio of Earnings to Fixed Charges 2.75 2.92 2.57 2.04 1.52
======= ======= ======= ======= =======
(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 pretax 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 dividends
requirements of majority-owned subsidiaries stated on a pre-tax level.
1