EX-12.C 9 dex12c.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND Computation of Ratios of Earnings to Fixed Charges Plus Preferred Stock Dividend

EXHIBIT 12c

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Plus Preferred Security Dividend Requirements

 

     For the Years Ended
December 31,
 
     2009     2008     2007     2006     2005  
     (Millions, except ratios)  

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

          

Pre-tax Income from Continuing Operations

   $ 551      $ 592      $ 637      $ 448      $ 583   

Fixed Charges

     318        331        338        352        348   

Preferred Securities Dividend Requirements of Subsidiaries

     (6     (6     (6     (6     (6
                                        

Total Earnings

   $ 863      $ 917      $ 969      $ 794      $ 925   
                                        

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

          

Interest Expense

   $ 312      $ 325      $ 332      $ 346      $ 342   

Preferred Securities Dividends

     4        4        4        4        4   

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

     2        2        2        2        2   
                                        

Total Fixed Charges

   $ 318      $ 331      $ 338      $ 352      $ 348   
                                        

Ratio of Earnings to Fixed Charges

     2.72        2.77        2.87        2.26        2.66   
                                        

 

(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.