EXHIBIT 12.3

PSEG POWER LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|                                                              |  | For the Nine MonthsEnded September 30, |      | For the Years EndedDecember 31, |  
|------------------------------------------------------------- |  | -------------------------------------- | ---- | ------------------------------- | -
|                                                              |  |                                        |      |                                 |  
|                                                              |  | 2003                                   |      | 2002                            |  
|                                                              |  |                                        |      |                                 |  
|                                                              |  | (Millions, except ratios)              |     
|Earnings as Defined in Regulation S-K (A):                    |  |                                        |      |                                 |  
|                                                              |  |                                        |      |                                 |  
|Pre-tax Income from Continuing Operations                     |  | $                                      | 670  |                                 | $
|Fixed Charges                                                 |  |                                        | 172  |                                 |  
|Capitalized Interest                                          |  |                                        | (89  | )                               |  
|Preferred Stock Dividend Requirements                         |  |                                        |     |                                 |  
|                                                              |  |                                        |      |                                 |  
|Earnings                                                      |  | $                                      | 753  |                                 | $
|                                                              |  |                                        |      |                                 |  
|                                                              |  |                                        |      |                                 |  
|Fixed Charges as Defined in Regulation S-K
  (B)              |  |                                        |      |                                 |  
|                                                              |  |                                        |      |                                 |  
|Interest Expense                                              |  | $                                      | 171  |                                 | $
|Interest Factor in Rentals                                    |  |                                        | 1    |                                 |  
|Preferred Securities Dividends Requirements
  of Subsidiaries |  |                                        |     |                                 |  
|                                                              |  |                                        |      |                                 |  
|Total Fixed Charges                                           |  | $                                      | 172  |                                 | $
|                                                              |  |                                        |      |                                 |  
|                                                              |  |                                        |      |                                 |  
|Ratio of Earnings to Fixed Charges                            |  |                                        | 4.38 |                                 |  
|                                                              |  |                                        |      |                                 |  

(A)

The term earnings shall be defined as
pretax income from continuing operations. Add to pretax 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.