EXHIBIT 12
                  PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
                  --------------------------------------------
                COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

                                                                  12 Months
                                                                    Ended
                                 YEARS ENDED DECEMBER 31,          June 30,
                         ------- -------  ------- ------- -------
                         1993(B)   1994     1995    1996    1997    1998
                         ------- -------  ------- ------- -------  ------
                            (Millions of Dollars, where applicable)

Earnings as Defined in
Regulation S-K (A):

Income from Continuing
Operations (C)             $549    $667     $627    $588    $560    $642
Income Taxes (D)            296     320      348     297     313     410
Fixed Charges               539     535      549     528     543     558
                         ------  ------   ------  ------   -----  ------ 
Earnings                 $1,384  $1,522   $1,524  $1,413  $1,416  $1,610
                         ======  ======   ======  ======  ======  ======


Fixed Charges as Defined in Regulation S-K (E):

Total Interest Expense (F) $471    $462     $464    $453    $470   $481
Interest Factor in           
  Rentals                    11      12       12      12      11     11
Subsidiaries' Preferred
  Securities Dividend
  Requirements               --       2       16      28      44     52
  Preferred Stock Dividends  38      41       34      23      12      9
Adjustment to Preferred
  Stock Dividends to state
  on a pre-income
  tax basis                  19      18       23      12       6      5
                         ------  ------   ------  ------  ------  -----  
Total Fixed Charges        $539    $535     $549    $528    $543   $558
                         ======  ======   ======  ======  ======  ===== 
Ratio of Earnings to 
  Fixed Charges            2.57    2.84     2.78    2.68    2.61   2.88
                         ======  ======   ======  ======  ======  =====  

(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 (a) the amount of any  interest  capitalized  during the period and
     (b) the actual  amount of any  preferred  stock  dividend  requirements  of
     majority-owned  subsidiaries  which were  included  in such  fixed  charges
     amount but not deducted in the determination of pretax income.

(B)  Excludes  cumulative  effect of $5.4 million credit to income  reflecting a
     change in income taxes.

(C)  Excludes income from discontinued operations.

(D)  Includes State income taxes and Federal income taxes for other income.

(E)  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 subsidiaries  and preferred stock  dividends,  increased to
     reflect the pre-tax  earnings  requirement  for Public  Service  Enterprise
     Group Incorporated.

(F)  Excludes interest expense from discontinued operations.