EX-99.12(A) 3 file002.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 (a) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Years Ended December 31, ----------- ------------ ----------- ------------ --------- 1997 1998 1999 2000 2001 ----------- ------------ ----------- ------------ --------- Earnings as Defined in Regulation S-K (A): Net Income (B) $528 $602 $653 $587 $235 Income Taxes (C) 256 404 510 407 89 Fixed Charges 450 446 450 463 392 ----------- ------------ ----------- ------------ --------- Earnings $1,234 $1,452 $1,613 $1,457 $716 =========== ============ =========== ============ ========= Fixed Charges as Defined in Regulation S-K(D): Total Interest Expense $395 $390 $394 $407 $358 Interest Factor in Rentals 11 11 10 10 10 Subsidiaries' Preferred Securities Dividend Requirements 44 45 46 46 24 ----------- ------------ ----------- ------------ --------- Total Fixed Charges $450 $446 $450 $463 $392 =========== ============ =========== ============ ========= Ratio of Earnings to Fixed Charges 2.74 3.27 3.58 3.15 1.83 =========== ============ =========== ============ =========
Notes: (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 (a) the amount of any interest capitalized during the period and (b) the actual amount of any preferred stock dividend requirements of majority-owned subsidiaries which were included in such fixed charges amount but not deducted in the determination of pre-tax income. (B) Excludes extraordinary item recorded in 1999. (C) Includes State income taxes and Federal income taxes for other income and excludes taxes applicable to extraordinary item recorded in 1999. (D) 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 subsidiaries.