EXHIBIT 12

                  PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES


<TABLE>
<CAPTION>
                                                                     YEARS ENDED DECEMBER 31,
                                                 --------------------------------------------------------------------
                                                    1996          1997           1998          1999          2000
                                                 -----------   ------------   -----------   -----------   -----------

Earnings as Defined in Regulation S-K (A):

<S>                                                    <C>            <C>           <C>           <C>           <C>
Income from Continuing Operations (B)                  $588           $560          $644          $723          $764
Income Taxes (C)                                        297            284           428           563           490
Fixed Charges                                           527            543           577           615           719
                                                 -----------   ------------   -----------   -----------   -----------
Earnings                                             $1,412         $1,387        $1,649        $1,901        $1,973
                                                 ===========   ============   ===========   ===========   ===========

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

Total Interest Expense (E)                             $453           $470          $481          $506          $610
Interest Factor in Rentals                               12             11            11            10            10
Subsidiaries' Preferred Securities Dividend
    Requirements                                         28             44            71            85            85
Preferred Stock Dividends                                22             12             9             9             9
Adjustment to Preferred Stock Dividends to
     state on a pre-income tax basis                     12              6             5             5             5
                                                 -----------   ------------   -----------   -----------   -----------
Total Fixed Charges                                    $527           $543          $577          $615          $719
                                                 ===========   ============   ===========   ===========   ===========
Ratio of Earnings to Fixed Charges                     2.68           2.55          2.86          3.09          2.73
                                                 ===========   ============   ===========   ===========   ===========
</TABLE>

Notes:

(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 (a) the amount of any interest capitalized during the period and (b)
    the actual amount of any preferred stock dividend requirements of
    majority-owned subsidiaries which were included in such fixed charges amount
    but not deducted in the determination of pre-tax income.

(B) Excludes income from discontinued operations and extraordinary item recorded
    in 1999.

(C) Includes State income taxes and Federal income taxes for other income and
    excludes taxes applicable to extraordinary item recorded in 1999.

(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 interest expense from discontinued operations.



                                      131