EX-12.C 5 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,
 
     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

     327        323        332        339        353   

Capitalized Interest

     (2     (1     0        0        0   

Preferred Securities Dividend Requirements of Subsidiaries

     (2     (6     (6     (6     (6
                                        

Total Earnings

   $ 914      $ 867      $ 918      $ 970      $ 795   
                                        

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   

Preferred Securities Dividends

     1        4        4        4        4   

Adjustments to state Preferred Securities

          

Dividends on a pre-income tax basis

     1        2        2        2        2   
                                        

Total Fixed Charges

   $ 327      $ 323      $ 331      $ 338      $ 352   
                                        

Ratio of Earnings to Fixed Charges

     2.80        2.68        2.77        2.87        2.26   
                                        

 

(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.