EXHIBIT 12
PSEG ENERGY HOLDINGS LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
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2002 2001 2000 1999 1998
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(Millions)
Earnings as Defined in Regulation S-K (A):
Pre-tax (Loss) Income from Continuing Operations $(357) $ 255 $ 176 $ 195 $ 116
Loss/(Income) from Equity Investees, Net of Distributions
11 (74) (11) 9 28
Fixed Charges 229 199 157 105 96
Capitalized Interest (12) (16) (21) (6) 1
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Earnings $(129) $ 364 $ 301 $ 303 $ 241
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Fixed Charges as Defined in Regulation S-K (B)
Interest Expense 227 196 154 102 93
Interest Factor in Rentals 2 3 3 3 3
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Total Fixed Charges $ 229 $ 199 $ 157 $ 105 $ 96
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Ratio of Earnings to Fixed Charges (C) (0.56) 1.83 1.92 $2.89 2.51
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(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 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 and (c) an estimate of
interest implicit in rentals.
(C) The ratio of Earnings to Fixed Charges for the year ended December 31, 2002
was (.56), as noted above, which represents a deficiency of $100 million.