EX-12 7 ex12-4.htm EXHIBIT 12-4

 

EXHIBIT 12.4

PSEG ENERGY HOLDINGS LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

 

 

For the Six Months
Ended June 30,

 

For the Years Ended
December 31,

 

 

 

 

 

 

 

2003

 

2002

 

2002

 

2001

 

2000

 

1999

 

1998

 

 

 

 

 

 

 

 

 

 

 

 

(Millions, except ratios)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income (Loss) from Continuing Operations

 

$

131

 

$

(486

)

$

(357

)

$

255

 

$

176

 

$

195

 

$

116

 

Loss/(Income) from Equity Investees, Net of Distributions

 

 

1

 

 

(10

)

 

11

 

 

(74

)

 

(11

)

 

9

 

 

28

 

Fixed Charges

 

 

112

 

 

113

 

 

229

 

 

199

 

 

157

 

 

105

 

 

96

 

Capitalized Interest

 

 

(7

)

 

(5

)

 

(12

)

 

(16

)

 

(21

)

 

(6

)

 

1

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

237

 

$

(388

)

$

(129

)

$

364

 

$

301

 

$

303

 

$

241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

112

 

$

112

 

$

227

 

$

196

 

$

154

 

$

102

 

$

93

 

Interest Factor in Rentals

 

 

—

 

 

1

 

 

2

 

 

3

 

 

3

 

 

3

 

 

3

 

 

 

 

 

 

 

 

 

 

Total Fixed Charges

 

$

112

 

$

113

 

$

229

 

$

199

 

$

157

 

$

105

 

$

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges (C)

 

 

2.12

 

 

(3.43

)

 

(0.56

)

 

1.83

 

 

1.92

 

 

2.89

 

 

2.51

 

 

 

 

 

 

 

 

 

 

(A)

The term “earnings” shall be defined as pretax income from continuing operations before income or loss from equity investees plus distributed income from equity investees. Add to pretax income the amount of fixed charges adjusted to exclude the amount of any interest capitalized during the period.

(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.

(C)

The ratio of earnings to fixed charges for the year ended December 31, 2002 and the six months ended June 30, 2002, were (0.56) and (3.43), respectively, as noted above, which represents a deficiency of $358 million and $501 million, respectively.