**EXHIBIT 12.3**

 

**PSEG POWER LLC**

**COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES**

 

 

 

|                                                    |   | **For          the Nine****Months Ended****September 30,** |   |   |   | **For          the Years Ended****December 31,** |   |
|---------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                                                    |   | **2006**                                                   |   |   |   | **2005**                                         |   |   |   | **2005** |   |   |   | **2004** |   |   |   | **2003** |   |   |   | **2002** |   |   |   | **2001** |   |
|                                                    |   | **(Millions,          except ratios)**                     |   |
| Earnings          as Defined in Regulation S-K (A):     |   |                                                       |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                                       |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax          Income from Continuing Operations      |   | $                                                          | 684    |   |   |                                             | $      | 528 |   |   |   | $ | 705 |   |   |   | $ | 551 |   |   |   | $ | 815 |   |   |   | $ | 781 |   |   |   | $ | 644 |   |
| Fixed          Charges                                  |   |                                                       | 168    |   |   |                                             |   | 162 |   |   |   |   | 228 |   |   |   |   | 225 |   |   |   |   | 219 |   |   |   |   | 219 |   |   |   |   | 213 |   |
| Capitalized          Interest                           |   |                                                       | (28    | )      |   |                                             |   | (71 | ) |   |   |   | (89 | ) |   |   |   | (107 | ) |   |   |   | (106 | ) |   |   |   | (93 | ) |   |   |   | (62 | ) |
| Total          Earnings                                 |   | $                                                          | 824    |   |   |                                             | $      | 619 |   |   |   | $ | 844 |   |   |   | $ | 669 |   |   |   | $ | 928 |   |   |   | $ | 907 |   |   |   | $ | 795 |   |
|                                                    |   |                                                       |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed          Charges as Defined in Regulation S-K (B) |   |                                                       |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                        |   | $                                                          | 167    |   |   |                                             | $      | 161 |   |   |   | $ | 226 |   |   |   | $ | 224 |   |   |   | $ | 217 |   |   |   | $ | 217 |   |   |   | $ | 206 |   |
| Interest          Factor in Rentals                     |   |                                                       | 1      |   |   |                                             |   | 1 |   |   |   |   | 2 |   |   |   |   | 1 |   |   |   |   | 2 |   |   |   |   | 2 |   |   |   |   | 7 |   |
| Total          Fixed Charges                            |   | $                                                          | 168    |   |   |                                             | $      | 162 |   |   |   | $ | 228 |   |   |   | $ | 225 |   |   |   | $ | 219 |   |   |   | $ | 219 |   |   |   | $ | 213 |   |
| Ratio of Earnings to Fixed Charges                      |   |                                                       | 4.90   |   |   |                                             |   | 3.82 |   |   |   |   | 3.70 |   |   |   |   | 2.97 |   |   |   |   | 4.24 |   |   |   |   | 4.14 |   |   |   |   | 3.73 |   |
|                                                    |   |                                                       |   |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

 

| (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 the amount of any interest capitalized during the period. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                    |
| (B)    | Fixed          Charges represent (a) interest, whether expensed or capitalized, (b)          amortization of debt discount, premium and expense and (c) an estimate          of interest implicit in rentals.                                           |

 

 

 

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