EX-12 4 ex12-2.htm EXHIBIT 12.2

EXHIBIT 12.2

 

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS

 

 

 

 

For the Nine
Months Ended
September 30,

 

For the Years Ended
December 31,

 

 

 

2006

 

2005

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

(Millions, except ratios)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income from Continuing Operations

 

$

360

 

$

473

 

$

583

 

$

592

 

$

376

 

$

320

 

$

324

 

Fixed Charges

 

 

259

 

 

261

 

 

349

 

 

369

 

 

397

 

 

415

 

 

469

 

Preferred Securities Pre-tax

 

 

(5

)

 

(5

)

 

(7

)

 

(7

)

 

(7

)

 

(7

)

 

(8

)

Earnings

 

$

614

 

$

729

 

$

925

 

$

954

 

$

766

 

$

728

 

$

785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

254

 

$

256

 

$

342

 

$

362

 

$

390

 

$

406

 

$

458

 

Interest Factor in Rentals

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2

 

 

3

 

Preferred Securities Dividends

 

 

3

 

 

3

 

 

4

 

 

4

 

 

4

 

 

4

 

 

5

 

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

 

 

2

 

 

2

 

 

3

 

 

3

 

 

3

 

 

3

 

 

3

 

Total Fixed Charges

 

$

259

 

$

261

 

$

349

 

$

369

 

$

397

 

$

415

 

$

469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

2.37

 

 

2.79

 

 

2.65

 

 

2.59

 

 

1.93

 

 

1.75

 

 

1.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.