<PAGE>
 
                                   EXHIBIT 12
                                   ----------


                       Ratio of Earnings to Fixed Charges
<PAGE>
 
                                                            Exhibit 12
                                    Conectiv
                                    --------
                                        
                       Ratio of Earnings to Fixed Charges
                       ----------------------------------
                             (Dollars in Thousands)



<TABLE>
<CAPTION>
 
 
                                         1998       1997       1996       1995       1994
                                       ---------  ---------  ---------  ---------  ---------
<S>                                    <C>        <C>        <C>        <C>        <C>
 
Net income                             $153,201   $101,218   $107,251   $107,546   $ 98,940
                                       --------   --------   --------   --------   --------
 
Income taxes                            105,817     72,155     78,340     75,540     67,613
                                       --------   --------   --------   --------   --------
 
Fixed charges:
 Interest on long-term debt             133,796     78,350     69,329     65,572     61,128
 Other interest                          26,199     12,835     12,516     10,353      9,336
 Preferred stock dividend
  requirements of subsidiaries           17,871     10,178     10,326      9,942      9,370
                                       --------   --------   --------   --------   --------
Total fixed charges                     177,866    101,363     92,171     85,867     79,834
                                       --------   --------   --------   --------   --------
 
Nonutility capitalized interest          (1,444)      (208)      (311)      (304)      (256)
                                       --------   --------   --------   --------   --------
 
Earnings before income taxes
 and fixed charges                     $435,440   $274,528   $277,451   $268,649   $246,131
                                       ========   ========   ========   ========   ========
 
 
Total fixed charges shown above        $177,866   $101,363   $ 92,171   $ 85,867   $ 79,834
Increase preferred stock dividend
 requirements of subsidiaries to
 a pre-tax amount                         4,901      3,065      6,025      6,243      6,578
                                       --------   --------   --------   --------   --------
Fixed charges for ratio computation    $182,767   $104,428   $ 98,196   $ 92,110   $ 86,412
                                       ========   ========   ========   ========   ========
 
Ratio of earnings to fixed charges         2.38       2.63       2.83       2.92       2.85
                                       --------   --------   --------   --------   --------
</TABLE>




For purposes of computing the ratio, earnings are net income plus income taxes
and fixed charges, less nonutility capitalized interest.  Fixed charges consist
of interest on long- and short-term debt, amortization of debt discount,
premium, and expense, preferred stock dividend requirements of subsidiaries, and
interest on leases.  Preferred dividend requirements for purposes of computing
the ratio have been increased to an amount representing the pre-tax earnings
which would be required to cover such dividend requirements.