EXHIBIT 12

                  PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES



                                                   -------------------------
                                                    For the Quarters Ended
                                                           March 31,
                                                   -------------------------
                                                       2002         2001
                                                   -----------   -----------
                                                      (Millions of Dollars)
Earnings as Defined in Regulation S-K (A):

Net Income                                                $180          $261
Income Taxes                                               114           153
Fixed Charges                                              213           188
                                                   -----------   -----------
Earnings                                                  $507          $602
                                                   ===========   ===========

Fixed Charges as Defined in Regulation S-K (B):

Total Interest Expense                                    $219          $176
Interest Factor in Rentals                                   3             3
Preferred Securities Dividend Requirements                  13            21
Preferred Stock Dividends                                    1             3
Adjustment to Preferred Stock Dividends to
     state on a pre-income tax basis                         1             2
                                                   -----------   -----------
Total Fixed Charges                                       $237          $205
                                                   ===========   ===========

Ratio of Earnings to Fixed Charges                        2.14          2.94
                                                   ===========   ===========

(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 and
     (b) the actual  amount of any  preferred  stock  dividend  requirements  of
     majority-owned  subsidiaries  which were  included  in such  fixed  charges
     amount but not deducted in the determination of pretax income.

(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 subsidiaries  and preferred stock  dividends,  increased to
     reflect the pre-tax  earnings  requirement  for Public  Service  Enterprise
     Group Incorporated.