EXHIBIT 12

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

                                                                                                               12 Months
                                                                                                                 Ended
                                                              YEARS ENDED DECEMBER 31,                         September
                                                                                                                  30,
                                      -------------  ------------  -------------  ------------   ------------  -----------
                                          1994          1995           1996          1997           1998          1999
                                      -------------  ------------  -------------  ------------   ------------  -----------
<S>                                           <C>           <C>            <C>           <C>           <C>           <C>
Earnings as Defined in Regulation
  S-K (A):
Income from Continuing Operations (B)         $667          $627           $588          $560          $644          $742
Income Taxes (C)                               320           348            297           313           428           481
Fixed Charges                                  535           549            527           543           577           597
                                      -------------  ------------  -------------  ------------   -----------   -----------
Earnings                                    $1,522        $1,524         $1,412        $1,416        $1,649        $1,820
                                      =============  ============  =============  ============   ===========   ===========

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

Total Interest Expense (E)                    $462          $464           $453          $470          $481          $489
Interest Factor in Rentals                      12            12             12            11            11            10
Subsidiaries' Preferred Securities
    Dividend Requirements                        2            16             28            44            71            84
Preferred Stock Dividends                       41            34             22            12             9             9
Adjustment to Preferred Stock
    Dividends to state on a
    pre-income tax basis                        18            23             12             6             5             5
                                      ------------   ------------  -------------  ------------   -----------   -----------
Total Fixed Charges                           $535          $549           $527          $543          $577          $597
                                      =============  ============  =============  ============   ===========   ===========

Ratio of Earnings to Fixed Charges            2.84          2.78           2.68          2.61          2.86          3.05
                                      =============  ============  =============  ============   ===========   ===========

<FN>
(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 (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 pre-tax income.

(B)  Excludes income from discontinued operations and extraordinary item.

(C)  Includes  State income taxes and Federal  income taxes for other income and
     excludes taxes applicable to extraordinary item.

(D)  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.

(E)  Excludes interest expense from discontinued operations.
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