EXHIBIT 12
<TABLE>


                  PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                 PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS

<CAPTION>

                                                                    Years Ended December 31,
                                                ------------   -----------   -----------    -----------   -----------
                                                   1992         1993(A)         1994           1995          1996
                                                ------------   -----------   -----------    -----------   -----------
                                                                       (Thousands of Dollars)
<S>                                                 <C>           <C>           <C>            <C>           <C>    
Earnings as Defined in Regulation S-K:
Income from Continuing Operations (B)               475,150       549,178       666,521        627,287       587,358
Federal Income Taxes (C)                            238,270       296,223       320,218        348,324       297,277
Fixed Charges                                       537,455       538,556       534,875        548,579       527,974
                                                ------------   -----------   -----------    -----------   -----------
Earnings                                          1,250,875     1,383,957     1,521,614      1,524,190     1,412,609
                                                ============   ===========   ===========    ===========   ===========

Fixed Charges as Defined in Regulation S-K
(D):

Total Interest Expense (E) (F)                      481,116       470,585       462,189        464,207       453,111
Interest Factor in Rentals                            9,591        11,090        12,120         11,956        11,490
Subsidiaries' Preferred Securities Dividend
    Requirements                                         --            --            --             --        27,741
Preferred Stock Dividends                            31,907        38,114        42,163         49,426        23,161
Adjustment to Preferred Stock Dividends to
     state on a pre-income tax basis                 14,841        18,767        18,403         22,990        12,471
                                                ------------   -----------   -----------    -----------   -----------
                                                    537,455       538,556       534,875        548,579       527,974
                                                ============   ===========   ===========    ===========   ===========

Ratio of Earnings to Fixed Charges                     2.33          2.57          2.84           2.78          2.68
                                                ============   ===========   ===========    ===========   ===========
</TABLE>


Notes:

(A) Excludes  cumulative  effect of $5.4 million  credit to income  reflecting a
change in income taxes.

(B) Excludes income from discontinued operations.

(C) Includes state income taxes and federal income taxes for other incomes.

(D)  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 subsidiaries  and preferred stock  dividends,  increased to
     reflect the pre-tax  earnings  requirement  for Public  Service  Enterprise
     Group Incorporated.

(E) Excludes 1992 interest expense on decommissioning cost of $5,208.

(F) Excludes interest expense from discontinued operations.