EX-12.B 6 pseg-12312015xq4ex12b.htm PSE&G EARNINGS TO FIXED CHARGES
EXHIBIT 12b
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Plus Preferred Security Dividend Requirements

|  |  | Years Ended |
|  |  | December 31, |
|  |  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |
| Earnings as Defined in Regulation S-K (A): |  |  |  |  |  |  |  |  |  |  |
| Pre-tax Income from Continuing Operations |  | $ | 1,257 |  |  | $ | 1,174 |  |  | $ | 993 |  |  | $ | 835 |  |  | $ | 861 |  |
| Fixed Charges |  | 306 |  |  | 303 |  |  | 316 |  |  | 314 |  |  | 319 |  |
| Capitalized Interest |  | (17 | ) |  | (16 | ) |  | (16 | ) |  | (13 | ) |  | (4 | ) |
| Total Earnings |  | $ | 1,546 |  |  | $ | 1,461 |  |  | $ | 1,293 |  |  | $ | 1,136 |  |  | $ | 1,176 |  |
| Fixed Charges as Defined in Regulation S-K (B) |  |  |  |  |  |  |  |  |  |  |
| Interest Expense |  | $ | 297 |  |  | $ | 293 |  |  | $ | 309 |  |  | $ | 308 |  |  | $ | 314 |  |
| Interest Factor in Rentals |  | 9 |  |  | 10 |  |  | 7 |  |  | 6 |  |  | 5 |  |
| Total Fixed Charges |  | $ | 306 |  |  | $ | 303 |  |  | $ | 316 |  |  | $ | 314 |  |  | $ | 319 |  |
| Ratio of Earnings to Fixed Charges |  | 5.05 |  |  | 4.82 |  |  | 4.09 |  |  | 3.62 |  |  | 3.69 |  |

(A) | The term "earnings" shall be defined as pre-tax income from continuing operations. Add to pre-tax 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, (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. There were no preferred stock dividend requirements for any period presented.