EX-12 2 ex12.htm EXHIBIT 12

EXHIBIT 12

 

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

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

 

$

938

 

$

1,052

 

$

1,399

$

1,237

 

$

1,324

 

$

659

 

$

1,139

 

(Income) Loss from Equity Investees, net of Distributions

 

 

(55

)

 

(77

)

 

(28

)

 

78

 

 

60

 

 

(2

)

 

(59

)

Fixed Charges

 

 

668

 

 

701

 

 

931

 

 

928

 

 

963

 

 

946

 

 

876

 

Capitalized Interest (B)

 

 

(30

)

 

(73

)

 

(92

)

 

(109

)

 

(116

)

 

(104

)

 

(74

)

Preferred Securities Dividend Requirements of Subsidiaries

 

 

(5

)

 

(9

)

 

(6

)

 

(6

)

 

(6

)

 

(6

)

 

(8

)

Total Earnings

 

$

1,516

 

$

1,594

 

$

2,204

 

$

2,128

 

$

2,225

 

$

1,493

 

$

1,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

655

 

$

684

 

$

915

 

$

913

 

$

949

 

$

926

 

$

852

 

Interest Factor in Rentals

 

 

8

 

 

8

 

 

10

 

 

9

 

 

8

 

 

14

 

 

16

 

Preferred Securities Dividend Requirements of Subsidiaries

 

 

5

 

 

9

 

 

6

 

 

6

 

 

6

 

 

6

 

 

8

 

Total Fixed Charges

 

$

668

 

$

701

 

$

931

 

$

928

 

$

963

 

$

946

 

$

876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

2.27

 

 

2.27

 

 

2.37

 

 

2.29

 

 

2.31

 

 

1.58

 

 

2.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)

The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity investees plus distributed income from equity investees. Add to pre-tax 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 dividend requirements of majority-owned subsidiaries stated on a pre-tax level.

 

 

(C)

Capitalized Interest excludes AFUDC for PSE&G.