<PAGE>

                                                                    EXHIBIT 12.3

                                 PSEG POWER LLC
               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES


<TABLE>
<CAPTION>
                                                  For the Three
                                                   Months Ended               For the Years Ended
                                                 ---------------------------------------------------------------
                                                   March 31,                      December 31,
                                                 ---------------------------------------------------------------
                                                  2006    2005      2005     2004      2003      2002      2001
                                                 ---------------------------------------------------------------
                                                                   (Millions, except ratios)
<S>                                               <C>     <C>       <C>      <C>       <C>       <C>       <C>
Earnings as Defined in Regulation S-K (A):

Pre-tax Income from Continuing Operations         $192    $198      $705     $551      $815      $781      $644
Fixed Charges                                       60      53       228      225       219       219       213
Capitalized Interest                               (20)    (25)      (89)    (107)     (106)      (93)      (62)
Preferred Stock Dividend Requirements               --      --        --      --         --        --        --
                                                 ---------------------------------------------------------------

Total Earnings                                    $232    $226      $844     $669      $928      $907      $795
                                                 ===============================================================

Fixed Charges as Defined in Regulation S-K (B)


Interest Expense                                   $60     $53      $226     $224      $217      $217      $206
Preferred Securities Dividend Requirements
of Subsidiaries                                      --     --        --      --         --        --        --
Interest Factor in Rentals                           --     --         2        1         2         2         7
                                                 ---------------------------------------------------------------

Total Fixed Charges                                $60     $53      $228     $225      $219      $219      $213
                                                 ===============================================================


Ratio of Earnings to Fixed Charges                3.87    4.26      3.70     2.97      4.24      4.14      3.73
                                                 ===============================================================
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(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 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.