EX-12 7 0007.txt PSE&G COMPUTATION OF EARNINGS
EXHIBIT 12 (A) ---------------------------------------------------------------------------------------------------------------------------- PUBLIC SERVICE ELECTRIC AND GAS COMPANY ---------------------------------------------------------------------------------------------------------------------------- COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 12 Months Ended YEARS ENDED DECEMBER 31, September 30, ----------- ------------ ------------- ------------ ------------ ---------- 1995 1996 1997 1998 1999 2000 ----------- ------------ ------------- ------------ ------------ ---------- Earnings as Defined in Regulation S-K (A): Net Income (B) $617 $535 $528 $602 $653 $620 Income Taxes (C) 326 268 256 404 510 450 Fixed Charges 419 438 450 446 450 404 ----------- ------------ ------------- ------------ ------------ ----------- Earnings $1,362 $1,241 $1,234 $1,452 $1,613 $1,474 =========== ============ ============= ============ ============ =========== Fixed Charges as Defined in Regulation S-K (D): Total Interest Expense $407 $399 $395 $390 $394 $348 Interest Factor in Rentals 12 11 11 11 10 10 Subsidiaries' Preferred Securities Dividend Requirements -- 28 44 45 46 46 ----------- ------------ ------------- ------------ ------------ ----------- Total Fixed Charges $419 $438 $450 $446 $450 $404 =========== ============ ============= ============ ============ =========== Ratio of Earnings to Fixed Charges 3.25 2.83 2.74 3.27 3.58 3.65 =========== ============ ============= ============ ============ =========== (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) Excludes extraordinary item. (C) Includes State income taxes and Federal income taxes for other income and excludes taxes applicable to extraordinary item. (D) 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.