**EXHIBIT 12.4**

**PSEG ENERGY HOLDINGS L.L.C.**

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

 

 

|                                                               |   | **For          the Nine           Months Ended** |   | **For          the Years Ended** |   |
|--------------------------------------------------------------------|--------|--------------------------------------------------|--------|----------------------------------|--------|
|                                                               |   | **September          30,**                       |   | **December          31,**        |   |
|                                                               |   | **2006**                                         |   | **2005**                         |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
| Earnings          as Defined in Regulation S-K (A):                |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax          (Loss) Income from Continuing Operations          |   | $                                                | (6     | )                                | $      | 169 |   | $ | 269 |   | $ | 199 |   | $ | 249 |   | $ | (369 | ) | $ | 237 |   |
| (Income)/Loss          from Equity Investees, Net of Distributions |   |                                                  | (55    | )                                |   | (77 | ) |   | (28 | ) |   | 78 |   |   | 60 |   |   | (2 | ) |   | (59 | ) |
| Fixed          Charges                                             |   |                                                  | 152    |                             |   | 169 |   |   | 214 |   |   | 224 |   |   | 215 |   |   | 219 |   |   | 186 |   |
| Capitalized          Interest                                      |   |                                                  | (1     | )                                |   | (1 | ) |   | (1 | ) |   | (3 | ) |   | (10 | ) |   | (12 | ) |   | (13 | ) |
| Total          Earnings                                            |        | $                                                | 90     |                             | $      | 260 |   | $ | 454 |   | $ | 498 |   | $ | 514 |   | $ | (164 | ) | $ | 351 |   |
|                                                               |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed          Charges as Defined in Regulation S-K (B)            |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest          Expense                                          |        | $                                                | 151    |                             | $      | 168 |   | $ | 213 |   | $ | 223 |   | $ | 214 |   | $ | 218 |   | $ | 183 |   |
| Interest          Factor in Rentals                                |   |                                                  | 1      |                             |   | 1 |   |   | 1 |   |   | 1 |   |   | 1 |   |   | 1 |   |   | 3 |   |
| Total          Fixed Charges                                       |        | $                                                | 152    |                             | $      | 169 |   | $ | 214 |   | $ | 224 |   | $ | 215 |   | $ | 219 |   | $ | 186 |   |
|                                                               |   |                                             |        |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio          of Earnings to Fixed Charges (C)                    |   |                                                  | 0.59   |                             |   | 1.53 |   |   | 2.12 |   |   | 2.22 |   |   | 2.39 |   |   | (0.75 | ) |   | 1.88 |   |
|                                                               |   |                                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

 

| (A)    | The          term “earnings” is defined as pre-tax income from continuing          operations before income or loss from equity investees plus distributed          income from equity investees. 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 (c) an estimate of          interest implicit in rentals.                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                            |
| (C)    | The          ratio of earnings to fixed charges for the nine months ended September          30, 2006 was 0.59, as noted above, which represents a deficiency of          $62 million. The ratio of earnings to fixed charges for the year ended          December 31, 2002 was (0.75), as noted above, which represents a deficiency          of $383 million. |

 

 

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