EX-12 2 c54440_ex12.htm exh12-.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 12

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

    For the Six                                                   
   
Months Ended
           
For the Years Ended        
          
    June 30,                        December 31,                    
   
2008
 
2007
 
2007
 
2006
 
2005
 
2004
 
2003
                       
(Millions, except ratios)
                   
Earnings as Defined in Regulation S-K (A):                                                                      
 
Pre-tax Income from Continuing Operations   $   716     $   1,033     $   2,379     $   1,139     $   1,386     $   1,220     $   1,256  
(Income) Loss from Equity Investees, net of       4         (25 )       (10 )       (2 )       (37 )       78         79  
Distributions                                                                      
Fixed Charges       326         383         782         851         888         894         953  
Capitalized Interest (B)       (17 )       (10 )       (26 )       (33 )       (92 )       (109 )       (116 )
Preferred Securities Dividend Requirements of       (2 )       (2 )       (6 )       (6 )       (6 )       (6 )       (6 )
Subsidiaries                                                                      
Total Earnings   $   1,027     $   1,379     $   3,119     $   1,949     $   2,139     $   2,077     $   2,166  
 
Fixed Charges as Defined in Regulation S-K (C)                                                                      
 
Interest Expense   $   317     $   374     $   765     $   834     $   872     $   879     $   939  
Interest Factor in Rentals       7         7         11         11         10         9         8  
Preferred Securities Dividend Requirements of       2         2         6         6         6         6         6  
Subsidiaries                                                                      
Total Fixed Charges   $   326     $   383     $   782     $   851     $   888     $   894     $   953  
 
Ratio of Earnings to Fixed Charges       3.15         3.60         3.99         2.29         2.41         2.32         2.27  

(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.