EX-12.2 4 pseg-9302018xq3ex122.htm EXHIBIT 12.2 Exhibit


EXHIBIT 12.2

PSEG POWER LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Years Ended
 
 
 
 
September 30,
 
December 31,
 
 
 
 
2018
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
(Millions, except ratios)
 
 
Earnings as Defined in Regulation S-K (A):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax Income (Loss) from Continuing Operations
 
$
527

 
$
(211
)
 
$
(250
)
 
$
(43
)
 
$
1,367

 
$
1,251

 
$
1,063

 
 
(Income) Loss from Equity Investees, net of Distributions
 
(1
)
 
2

 
4

 
7

 
1

 
3

 
(10
)
 
 
Fixed Charges
 
112

 
104

 
139

 
142

 
152

 
150

 
143

 
 
Capitalized Interest
 
(41
)
 
27

 
9

 
11

 
(1
)
 
1

 
1

 
 
Total Earnings
 
$
597

 
$
(78
)
 
$
(98
)
 
$
117

 
$
1,519

 
$
1,405

 
$
1,197

 
 
Fixed Charges as Defined in Regulation S-K (B)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
104

 
$
96

 
$
128

 
$
138

 
$
148

 
$
146

 
$
139

 
 
Interest Factor in Rentals
 
8

 
8

 
11

 
4

 
4

 
4

 
4

 
 
Total Fixed Charges
 
$
112

 
$
104

 
$
139

 
$
142

 
$
152

 
$
150

 
$
143

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (C)
 
5.33

 
(0.75
)
 
(0.71
)
 
0.82

 
9.99

 
9.37

 
8.37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(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 nine months ended September 30, 2017, was (0.75), as noted above, which represents a deficiency of $182 million. The ratio of earnings to fixed charges for the year ended December 31, 2017, was (0.71), as noted above, which represents a deficiency of $237 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.