EX-12.2 4 pseg-3312017xq1ex122.htm POWER EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.2

PSEG POWER LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Years Ended
 
 
 
 
March 31,
 
December 31,
 
 
 
 
2017
 
2016
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
 
 
(Millions, except ratios)
 
 
Earnings as Defined in Regulation S-K (A):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax Income from Continuing Operations
 
$
(286
)
 
$
321

 
$
(43
)
 
$
1,367

 
$
1,251

 
$
1,063

 
$
1,099

 
 
(Income) Loss from Equity Investees, net of Distributions
 
1

 
2

 
7

 
1

 
3

 
(10
)
 
(6
)
 
 
Fixed Charges
 
34

 
34

 
142

 
152

 
150

 
143

 
164

 
 
Capitalized Interest
 
29

 
(4
)
 
11

 
(1
)
 
1

 
1

 
(6
)
 
 
Total Earnings
 
$
(222
)
 
$
353

 
$
117

 
$
1,519

 
$
1,405

 
$
1,197

 
$
1,251

 
 
Fixed Charges as Defined in Regulation S-K (B)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
33

 
$
33

 
$
138

 
$
148

 
$
146

 
$
139

 
$
161

 
 
Interest Factor in Rentals
 
1

 
1

 
4

 
4

 
4

 
4

 
3

 
 
Total Fixed Charges
 
$
34

 
$
34

 
$
142

 
$
152

 
$
150

 
$
143

 
$
164

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (C)
 
(6.53
)
 
10.38

 
0.82

 
9.99

 
9.37

 
8.37

 
7.63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity method 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, and (c) an estimate of interest implicit in rentals.
(C)
The ratio of earnings to fixed charges for the three months ended March 31, 2017, was (6.53), as noted above, which represents a deficiency of $256 million. The ratio of earnings to fixed charges for the year ended December 31, 2016, was 0.82, as noted above, which represents a deficiency of $25 million.