EXHIBIT 12

PUBLIC SERVICEENTERPRISE GROUP
INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|---------------------------------------------------------- |  | ------------------------------- | ----- | ---- | - | ----- | - | ---- | ----- | ---- | - | ----- | - | - | ----- | -
|                                                           |  | For the Years EndedDecember 31, |      
|                                                           |  |                                 |       |      |   |       |   |      |       |      |  
|                                                           |  | 2008                            |       | 2007 |   | 2006  |   | 2005 |       | 2004 |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |  
|                                                           |  | (Millions, except ratios)       |      
|Earnings as Defined in Regulation S-K (A):                 |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Pre-tax Income from Continuing Operations                  |  | $                               | 1,909 |      | $ | 2,389 |   | $    | 1,130 |      | $ | 1,391 |   | $ | 1,220 |  
|(Income) Loss from Equity Investees, net of Distributions  |  |                                 | (5    | )    |   | (10   | ) |      | (33   | )    |   | (31   | ) |   | 78    |  
|Fixed Charges                                              |  |                                 | 648   |      |   | 770   |   |      | 838   |      |   | 874   |   |   | 894   |  
|Capitalized Interest (B)                                   |  |                                 | (36   | )    |   | (26   | ) |      | (33   | )    |   | (92   | ) |   | (109  | )
|Preferred Securities Dividend Requirements of Subsidiaries |  |                                 | (6    | )    |   | (6    | ) |      | (6    | )    |   | (6    | ) |   | (6    | )
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Total Earnings                                             |  | $                               | 2,510 |      | $ | 3,117 |   | $    | 1,896 |      | $ | 2,136 |   | $ | 2,077 |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Fixed Charges as Defined in Regulation S-K (C)             |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Interest Expense                                           |  | $                               | 630   |      | $ | 753   |   | $    | 821   |      | $ | 858   |   | $ | 879   |  
|Interest Factor in Rentals                                 |  |                                 | 12    |      |   | 11    |   |      | 11    |      |   | 10    |   |   | 9     |  
|Preferred Securities Dividend Requirements of Subsidiaries |  |                                 | 6     |      |   | 6     |   |      | 6     |      |   | 6     |   |   | 6     |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Total Fixed Charges                                        |  | $                               | 648   |      | $ | 770   |   | $    | 838   |      | $ | 874   |   | $ | 894   |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  
|Ratio of Earnings to Fixed Charges                         |  |                                 | 3.87  |      |   | 4.05  |   |      | 2.26  |      |   | 2.44  |   |   | 2.32  |  
|                                                           |  |                                 |       |      |   |       |   |      |       |      |   |       |   |   |       |  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | The term earnings shall
 be defined as pre-tax Income from Continuing Operations before income or loss
 from equity investees plus distributed income from equity investees. Add to
 pre-tax 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 dividend requirements of majority-owned subsidiaries
 stated on a pre-tax level.                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(C) | Capitalized Interest
 excludes AFUDC for PSE&G.                                                                                                                                                                                                                                                                                                                                                                                                            

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