EXHIBIT 12

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

|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|------------------------------------------------------------ |  | ------------------------------------- | ----- | ---- | - | ---- | ------------------------------- | ---- | ----- | ---- | - | ----- | - | ---- | ----- | - | - | ----- | - | - | ----- | -
|                                                             |  | For the Six
  Months Ended
  June 30, |       |      |   |      | For the Years EndedDecember 31, |      |       |      |  
|                                                             |  |                                       |      
|                                                             |  | 2007                                  |       | 2006 |   | 2006 |                                 | 2005 |       | 2004 |   | 2003  |   | 2002 |      
|                                                             |  |                                       |      
|                                                             |  | (Millions, except ratios)             |      
|Earnings as Defined in
  Regulation S-K (A):                 |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Pre-tax Income from
  Continuing Operations                  |  | $                                     | 627   |      | $ | 197  |                                 | $    | 1,206 |      | $ | 1,446 |   | $    | 1,279 |   | $ | 1,324 |   | $ | 659   |  
|                                                            
|Loss (Income) from Equity
  Investees, net of Distributions  |  |                                       | 25    |      |   | (31  | )                               |      | (37   | )    |   | (28   | ) |      | 78    |   |   | 60    |   |   | (2    | )
|Fixed Charges                                                |  |                                       | 388   |      |   | 424  |                                 |      | 870   |      |   | 899   |   |      | 904   |   |   | 963   |   |   | 946   |  
|Capitalized Interest (B)                                     |  |                                       | (11   | )    |   | (28  | )                               |      | (33   | )    |   | (92   | ) |      | (109  | ) |   | (116  | ) |   | (104  | )
|Preferred Securities
  Dividend Requirements of Subsidiaries |  |                                       | (3    | )    |   | (3   | )                               |      | (6    | )    |   | (6    | ) |      | (6    | ) |   | (6    | ) |   | (6    | )
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Total Earnings                                               |  | $                                     | 1,026 |      | $ | 559  |                                 | $    | 2,000 |      | $ | 2,219 |   | $    | 2,146 |   | $ | 2,225 |   | $ | 1,493 |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Fixed Charges as Defined in
  Regulation S-K (C)             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Interest Expense                                             |  | $                                     | 380   |      | $ | 416  |                                 | $    | 853   |      | $ | 883   |   | $    | 889   |   | $ | 949   |   | $ | 926   |  
|Interest Factor in Rentals                                   |  |                                       | 5     |      |   | 5    |                                 |      | 11    |      |   | 10    |   |      | 9     |   |   | 8     |   |   | 14    |  
|Preferred Securities Dividend
  Requirements of Subsidiaries |  |                                       | 3     |      |   | 3    |                                 |      | 6     |      |   | 6     |   |      | 6     |   |   | 6     |   |   | 6     |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Total Fixed Charges                                          |  | $                                     | 388   |      | $ | 424  |                                 | $    | 870   |      | $ | 899   |   | $    | 904   |   | $ | 963   |   | $ | 946   |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  
|Ratio of Earnings to Fixed
  Charges                         |  |                                       | 2.64  |      |   | 1.32 |                                 |      | 2.30  |      |   | 2.47  |   |      | 2.37  |   |   | 2.31  |   |   | 1.58  |  
|                                                             |  |                                       |       |      |   |      |                                 |      |       |      |   |       |   |      |       |   |   |       |   |   |       |  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.                                                                                                                                                                                                                                                                                                                                                                                                                 

---