**EXHIBIT 12.4**

**PSEG ENERGY HOLDINGS LLC****COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES**

 

|                                                      |   | **For the Quarters****Ended March 31,** |   | **For the Years Ended****December 31,** |   |
|-----------------------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|--------|
|                                                      |   |                                         |   |                                         |   |
|                                                      |   | **2003**                                |   | **2002**                                |   | **2002** |   | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
|                                                      |   |                                         |   |                                         |   |  |   |  |   |  |   |  |   |  |   |
| Earnings as Defined in Regulation S-K (A):                |   |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax Income from Continuing Operations                 |   | $                                       | 81     |                                    | $      | 5 |   | $ | (357 | ) | $ | 255 |   | $ | 176 |   | $ | 195 |   | $ | 116 |   |
| Loss/(Income) from Equity Investees, Net of Distributions |   |                                    | 2      |                                    |   | 13 |   |   | 11 |   |   | (74 | ) |   | (11 | ) |   | 9 |   |   | 28 |   |
| Fixed Charges                                             |   |                                    | 55     |                                    |   | 57 |   |   | 229 |   |   | 199 |   |   | 157 |   |   | 105 |   |   | 96 |   |
| Capitalized Interest                                      |   |                                    | (4     | )                                       |   | (3 | ) |   | (12 | ) |   | (16 | ) |   | (21 | ) |   | (6 | ) |   | (1 | ) |
|                                                      |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Earnings                                                  |   | $                                       | 134    |                                    | $      | 72 |   | $ | (129 | ) | $ | 364 |   | $ | 301 |   | $ | 303 |   | $ | 239 |   |
|                                                      |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Fixed Charges as Defined in Regulation S-K (B)            |   |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                          |   | $                                       | 55     |                                    | $      | 57 |   | $ | 227 |   | $ | 196 |   | $ | 154 |   | $ | 102 |   | $ | 93 |   |
| Interest Factor in Rentals                                |   |                                    | — |                                    |   | — |   |   | 2 |   |   | 3 |   |   | 3 |   |   | 3 |   |   | 3 |   |
|                                                      |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total Fixed Charges                                       |   | $                                       | 55     |                                    | $      | 57 |   | $ | 229 |   | $ | 199 |   | $ | 157 |   | $ | 105 |   | $ | 96 |   |
|                                                      |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Ratio of Earnings to Fixed Charges (C)                    |   |                                    | 2.44   |                                    |   | 1.26 |   |   | (0.56 | ) |   | 1.83 |   |   | 1.92 |   |   | 2.89 |   |   | 2.49 |   |
|                                                      |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

(A)

The term “earnings” shall be defined as pretax income from continuing operations before income or loss from equity investees plus distributed income from equity investees. Add to pretax income the amount of fixed charges adjusted to exclude (a) 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 year ended December 31, 2002 was (0.56), as noted above, which represents a deficiency of $358 million.