EX-12 2 exhibit_12.htm

EXHIBIT 12

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six
Months Ended
June 30,

 

 

 

 

For the Years Ended
December 31,

 

 

 

 

 

 

 

 

2007

 

2006

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

 

 

(Millions, except ratios)

 

Earnings as Defined in Regulation S-K (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income from Continuing Operations

 

$

627

 

$

197

 

$

1,206

 

$

1,446

 

$

1,279

 

$

1,324

 

$

659

 

 

Loss (Income) from Equity Investees, net of Distributions

 

 

25

 

 

(31

)

 

(37

)

 

(28

)

 

78

 

 

60

 

 

(2

)

Fixed Charges

 

 

388

 

 

424

 

 

870

 

 

899

 

 

904

 

 

963

 

 

946

 

Capitalized Interest (B)

 

 

(11

)

 

(28

)

 

(33

)

 

(92

)

 

(109

)

 

(116

)

 

(104

)

Preferred Securities Dividend Requirements of Subsidiaries

 

 

(3

)

 

(3

)

 

(6

)

 

(6

)

 

(6

)

 

(6

)

 

(6

)

 

 

Total Earnings

 

$

1,026

 

$

559

 

$

2,000

 

$

2,219

 

$

2,146

 

$

2,225

 

$

1,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges as Defined in Regulation S-K (C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

380

 

$

416

 

$

853

 

$

883

 

$

889

 

$

949

 

$

926

 

Interest Factor in Rentals

 

 

5

 

 

5

 

 

11

 

 

10

 

 

9

 

 

8

 

 

14

 

Preferred Securities Dividend Requirements of Subsidiaries

 

 

3

 

 

3

 

 

6

 

 

6

 

 

6

 

 

6

 

 

6

 

 

 

Total Fixed Charges

 

$

388

 

$

424

 

$

870

 

$

899

 

$

904

 

$

963

 

$

946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

2.64

 

 

1.32

 

 

2.30

 

 

2.47

 

 

2.37

 

 

2.31

 

 

1.58

 

 

 

 

 

(A)

The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity investees plus distributed income from equity investees. Add to pre-tax 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 dividend requirements of majority-owned subsidiaries stated on a pre-tax level.

 

 

(C)

Capitalized Interest excludes AFUDC for PSE&G.