EX-12.B 4 dex12b.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12b

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

     For the Years Ended
December 31,		  
     2010     2009     2008      2007      2006  
     (Millions, except ratios)  

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

             

Pre-tax Income from Continuing Operations

    $ 591      $ 551      $ 592       $ 637       $ 448   

Fixed Charges

      325        317        325         332         346   

Capitalized Interest

      (2 )      (1 )      0         0         0   
                                          

Total Earnings

    $ 914      $ 867      $ 917       $ 969       $ 794   
                                          

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

             

Interest Expense

    $ 320      $ 313      $ 325       $ 332       $ 346   

Interest Factor in Rentals

      5        4        0         0         0   
                                          

Total Fixed Charges

    $ 325      $ 317      $ 325       $ 332       $ 346   
                                          

Ratio of Earnings to Fixed Charges

      2.81        2.74        2.82         2.92         2.29   
                                          

 

(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 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.