EXHIBIT
12

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

|                                                              |  | For the Nine Months
  Ended September 30, |       | For the Years Ended
  December 31, |  
|------------------------------------------------------------- |  | ----------------------------------------- | ----- | ---------------------------------- | -
|                                                              |  |                                           |       |                                    |  
|                                                              |  | 2003                                      |       | 2002                               |  
|                                                              |  |                                           |       |                                    |  
|                                                              |  | (Millions,
  except ratios)               |      
|Earnings as Defined in Regulation S-K (A):                    |  |                                           |       |                                    |  
|                                                              |  |                                           |       |                                    |  
|Pre-tax Income (Loss) from Continuing
  Operations            |  | $                                         | 684   |                                    | $
|Loss/(Income) from Equity Investees, Net of
  Distributions   |  |                                           | (6    | )                                  |  
|Fixed Charges                                                 |  |                                           | 732   |                                    |  
|Capitalized Interest and AFUDC                                |  |                                           | (99   | )                                  |  
|Preferred Securities Dividends Requirements
  of Subsidiaries |  |                                           | (3    | )                                  |  
|                                                              |  |                                           |       |                                    |  
|Earnings                                                      |  | $                                         | 1,308 |                                    | $
|                                                              |  |                                           |       |                                    |  
|                                                              |  |                                           |       |                                    |  
|Fixed Charges as Defined in Regulation S-K
  (B)              |  |                                           |       |                                    |  
|                                                              |  |                                           |       |                                    |  
|Interest Expense                                              |  | $                                         | 722   |                                    | $
|Interest Factor in Rentals                                    |  |                                           | 7     |                                    |  
|Preferred Securities Dividends Requirements
  of Subsidiaries |  |                                           | 3     |                                    |  
|                                                              |  |                                           |       |                                    |  
|Total Fixed Charges                                           |  | $                                         | 732   |                                    | $
|                                                              |  |                                           |       |                                    |  
|                                                              |  |                                           |       |                                    |  
|Ratio of Earnings to Fixed Charges (C)                        |  |                                           | 1.79  |                                    |  
|                                                              |  |                                           |       |                                    |  

(A)

The term earnings shall be defined as
pretax income from continuing operations before income or loss from equity
investees plus distributed income from equity investees. Add to pretax 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 dividends requirements of majority-owned subsidiaries stated on a
pre-tax level.