EX-12.B 17 ex-12a2.txt COMPUTATION OF RATIOS Exhibit 12(b) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS
For the Year Ended December 31, 2002 2001 2000 1999 1998 ---------------------------------------------------- (Millions) Earnings as Defined in regulation S-K (A): Pre-tax Income from Continuing Operations $ 320 $ 324 $ 994 $ 1,163 $ 1,006 Fixed Charges 429 487 462 457 451 Preferred Securities Dividend Requirements of Consolidated Subsidiaries (13) (24) (46) (46) (44) Preferred Stock Dividends, pre-tax (7) (8) (15) (15) (15) AFUDC (1) (2) (1) (7) (12) ---------------------------------------------------- Total Earnings $ 728 $ 777 $ 1,394 $ 1,552 $ 1,386 ==================================================== Fixed Charges as Defined in regulation S-K (B): Total Interest Expense $ 407 $ 452 $ 398 $ 394 $ 390 Interest Factor in Rentals 2 3 3 2 2 Preferred Securities Dividend Requirements of Consolidated Subsidiaries 13 24 46 46 44 Preferred Stock Dividends 4 5 9 9 9 Adjustment to Preferred Stock Dividends Requirements to state on a pre-income tax basis 3 3 6 6 6 ---------------------------------------------------- Total Fixed Charges $ 429 $ 487 $ 462 $ 457 $ 451 ==================================================== Ratio of Earnings to Fixed Charges 1.70 1.60 3.02 3.40 3.07
(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 pretax income. (B) Fixed Charges represent (a) interest, whether expensed or capitalized, (including interest on the securitized debt) (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 and preferred stock dividends, increased to reflect the pre-tax earnings requirement for Public Service Electric and Gas Company.