EX-12.3 8 c55441_ex12-3.htm

EXHIBIT 12.3

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months

 

For the Years Ended

 

 

 

Ended September 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

 

$

448

 

$

516

 

$

637

 

$

448

 

$

583

 

$

592

 

$

376

 

Fixed Charges

 

 

249

 

 

255

 

 

339

 

 

353

 

 

349

 

 

369

 

 

397

 

Preferred Securities Pre Tax

 

 

(5

)

 

(5

)

 

(7

)

 

(7

)

 

(7

)

 

(7

)

 

(7

)

 

 

 

Earnings

 

$

692

 

$

766

 

$

969

 

$

794

 

$

925

 

$

954

 

$

766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

244

 

$

250

 

$

332

 

$

346

 

$

342

 

$

362

 

$

390

 

Interest Factor in Rentals

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Preferred Securities Dividends

 

 

3

 

 

3

 

 

4

 

 

4

 

 

4

 

 

4

 

 

4

 

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

 

 

2

 

 

2

 

 

3

 

 

3

 

 

3

 

 

3

 

 

3

 

 

 

 

Total Fixed Charges

 

$

249

 

$

255

 

$

339

 

$

353

 

$

349

 

$

369

 

$

397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

2.78

 

 

3.00

 

 

2.86

 

 

2.25

 

 

2.65

 

 

2.59

 

 

1.93

 

 

 

 

 

 

(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.