EX-12 2 dex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

 

    For the Three
Months Ended
March 31,
    For the Years Ended December 31,  
   

2010

   

2009

   

2009

   

2008

   

2007

   

2006

   

2005

 
                (Millions, except ratios)  

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

             

Pre-tax Income from Continuing Operations

  $ 847      $ 748      $ 2,636      $ 1,909      $ 2,389      $ 1,130      $ 1,391   

(Income) Loss from Equity Investees, net of Distributions

    (5     (5     (25     (5     (10     (33     (31

Fixed Charges

    138        158        591        648        770        838        874   

Capitalized Interest (B)

    (15     (8     (45     (36     (26     (33     (92

Preferred Securities Dividend Requirements of Subsidiaries

    (2     (2     (6     (6     (6     (6     (6
                                                       

Total Earnings

  $ 963      $ 891      $ 3,151      $ 2,510      $ 3,117      $ 1,896      $ 2,136   
                                                       

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

             

Interest Expense

  $ 131      $ 153      $ 572      $ 630      $ 753      $ 821      $ 858   

Interest Factor in Rentals

    5        3        13        12        11        11        10   

Preferred Securities Dividend Requirements of Subsidiaries

    2        2        6        6        6        6        6   
                                                       

Total Fixed Charges

  $ 138      $ 158      $ 591      $ 648      $ 770      $ 838      $ 874   
                                                       

Ratio of Earnings to Fixed Charges

    6.99        5.64        5.33        3.87        4.05        2.26        2.44   
                                                       

 

(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.