EX-12 15 ex-121.txt COMPUTATION OF RATIOS EXHIBIT 12 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Years Ended December 31, -------------------------------------------------------- 1998 1999 2000 2001 2002 ------- ------- ------- ------- ------- (millions) Earnings as Defined in Regulation S-K (A): Pre-tax Income from Continuing Operations $ 1,077 $ 1,288 $ 1,272 $ 1,157 $ 664 Loss/(Income) from Equity Investees, Net of Distributions 28 9 (11) (74) 11 Fixed Charges 577 615 718 894 966 Capitalized Interest and AFUDC (11) (16) (33) (81) (109) Preferred Securities Dividends Requirements of Subsidiaries (85) (99) (100) (75) (60) ======= ======= ======= ======= ======= Earnings $ 1,586 $ 1,797 $ 1,846 $ 1,821 $ 1,472 ======= ======= ======= ======= ======= Fixed Charges as Defined in Regulation S-K (B) Interest Expense 481 506 604 803 892 Interest Factor in Rentals 11 10 14 16 14 Preferred Securities Dividends Requirements of Subsidiaries 85 99 100 75 60 Total Fixed Charges $ 577 $ 615 $ 718 $ 894 $ 966 ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges 2.75 2.92 2.57 2.04 1.52 ======= ======= ======= ======= =======
(A) The term "earnings" shall be defined as pretax income from continuing operations before income or loss from equity investees plus distributed income from equity investees. Add to pretax 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 dividends requirements of majority-owned subsidiaries stated on a pre-tax level. 1