EX-12 3 ex12.htm EXHIBIT 12

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,

 

 

 

 

 

 

 

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

 

$

471

 

$

(46)

 

$

664

 

$

1,157

 

$

1,272

 

$

1,288

 

$

1,077

 

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

 

 

1

 

 

(10)

 

 

11

 

 

(74

)

 

(11

)

 

9

 

 

28

 

Fixed Charges

 

 

484

 

 

462

 

 

966

 

 

894

 

 

718

 

 

615

 

 

577

 

Capitalized Interest and AFUDC

 

 

(66

)

 

(48

)

 

(109

)

 

(81

)

 

(33

)

 

(16

)

 

(11

)

Preferred Securities Dividends Requirements of Subsidiaries

 

 

(36

)

 

(28

)

 

(60

)

 

(75

)

 

(100

)

 

(99

)

 

(85

)

 

 

 

 

 

 

 

 

 

Earnings

 

$

854

 

$

330

 

$

1,472

 

$

1,821

 

$

1,846

 

$

1,797

 

$

1,586

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

443

 

$

427

 

$

892

 

$

803

 

$

604

 

$

506

 

$

481

 

Interest Factor in Rentals

 

 

5

 

 

7

 

 

14

 

 

16

 

 

14

 

 

10

 

 

11

 

Preferred Securities Dividends Requirements of Subsidiaries

 

 

36

 

 

28

 

 

60

 

 

75

 

 

100

 

 

99

 

 

85

 

 

 

 

 

 

 

 

 

 

Total Fixed Charges

 

$

484

 

$

462

 

$

966

 

$

894

 

$

718

 

$

615

 

$

577

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges (C)

 

 

1.76

 

 

0.71

 

 

1.52

 

 

2.04

 

 

2.57

 

 

2.92

 

 

2.75

 

 

 

 

 

 

 

 

 

 

(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 (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 dividends requirements of majority-owned subsidiaries stated on a pre-tax level.

(C)

The ratio of earnings to fixed charges for the six months ended June 30, 2002 was 0.71, as noted above, which represents a deficiency of $132 million.