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. |