EX-12.3 5 pseg-9302012xq3ex123.htm PSE&G W PREFER EFC RATIO PSEG-9.30.2012-Q3 EX 12.3


EXHIBIT 12.3

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Plus Preferred Security Dividend Requirements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Years Ended
 
 
 
 
September 30,
 
December 31,
 
 
 
 
2012
 
2011
 
2011
 
2010
 
2009
 
2008
 
2007
 
 
 
 
Millions, except ratios
 
 
Earnings as Defined in Regulation S-K (A):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax Income from Continuing Operations
 
$
701

 
$
709

 
$
861

 
$
591

 
$
551

 
$
592

 
$
637

 
 
Fixed Charges
 
233

 
240

 
319

 
327

 
323

 
332

 
339

 
 
Capitalized Interest
 
(9
)
 
(2
)
 
(4
)
 
(2
)
 
(1
)
 
—

 
—

 
 
Preferred Securities Dividend Requirements
 
—

 
—

 
—

 
(2
)
 
(6
)
 
(6
)
 
(6
)
 
 
Total Earnings
 
$
925

 
$
947

 
$
1,176

 
$
914

 
$
867

 
$
918

 
$
970

 
 
Fixed Charges as Defined in Regulation S-K (B)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
229

 
$
236

 
$
314

 
$
320

 
$
313

 
$
325

 
$
332

 
 
Interest Factor in Rentals
 
4

 
4

 
5

 
5

 
4

 
—

 
—

 
 
Preferred Securities Dividend
 
—

 
—

 
—

 
1

 
4

 
4

 
4

 
 
Adjustments to state Preferred Securities Dividends on a pre-income tax basis
 
—

 
—

 
—

 
1

 
2

 
2

 
2

 
 
Total Fixed Charges
 
$
233

 
$
240

 
$
319

 
$
327

 
$
323

 
$
331

 
$
338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
3.97

 
3.95

 
3.69

 
2.80

 
2.68

 
2.77

 
2.87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.