EX-12 5 ex12-3.htm EXHIBIT 12.3

EXHIBIT 12.3

 

PSEG POWER LLC

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

 

 

 

 

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

 

$

684

 

 

 

$

528

 

 

 

$

705

 

 

 

$

551

 

 

 

$

815

 

 

 

$

781

 

 

 

$

644

 

Fixed Charges

 

 

168

 

 

 

 

162

 

 

 

 

228

 

 

 

 

225

 

 

 

 

219

 

 

 

 

219

 

 

 

 

213

 

Capitalized Interest

 

 

(28

)

 

 

 

(71

)

 

 

 

(89

)

 

 

 

(107

)

 

 

 

(106

)

 

 

 

(93

)

 

 

 

(62

)

Total Earnings

 

$

824

 

 

 

$

619

 

 

 

$

844

 

 

 

$

669

 

 

 

$

928

 

 

 

$

907

 

 

 

$

795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Interest Expense

 

$


167

 

 

 

$


161

 

 

 

$


226

 

 

 

$


224

 

 

 

$


217

 

 

 

$


217

 

 

 

$


206

 

Interest Factor in Rentals

 

 

1

 

 

 

 

1

 

 

 

 

2

 

 

 

 

1

 

 

 

 

2

 

 

 

 

2

 

 

 

 

7

 

Total Fixed Charges

 

$

168

 

 

 

$

162

 

 

 

$

228

 

 

 

$

225

 

 

 

$

219

 

 

 

$

219

 

 

 

$

213

 


Ratio of Earnings to Fixed Charges

 

 


4.90

 

 

 

 


3.82

 

 

 

 


3.70

 

 

 

 


2.97

 

 

 

 


4.24

 

 

 

 


4.14

 

 

 

 


3.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)

The term “earnings” shall be defined as pre-tax Income from Continuing Operations. Add to pre-tax 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 and (c) an estimate of interest implicit in rentals.