Exhibit 4-7

                               Form of Senior Note

REGISTERED                                                         REGISTERED

                     PUBLIC SERVICE ELECTRIC AND GAS COMPANY

                                    NOTE DUE

NO.                                                            PRINCIPAL AMOUNT:

                                                               CUSIP:

      Unless  and  until  it is  exchanged  in  whole  or in part  for  Notes in
definitive  form,  this  Note may not be  transferred  except  as a whole by the
Depositary to a nominee of the  Depositary or by a nominee of the  Depositary to
the Depositary or another  nominee of the Depositary or by the Depositary or any
such  nominee  to  a  successor  Depositary  or  a  nominee  of  such  successor
Depositary. Unless this certificate is presented by an authorized representative
of The Depository  Trust Company (55 Water Street,  New York, New York) ("DTC"),
to the issuer or its agent for  registration  of transfer,  exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or such other
name as requested by an authorized representative of DTC and any payment is made
to Cede & Co., ANY  TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered  owner hereof,  Cede & Co.,
has an interest herein.

      PUBLIC SERVICE ELECTRIC AND GAS COMPANY,  a corporation duly organized and
existing  under the laws of the State of New Jersey  (herein  referred to as the
"Company"),  for  value  received,  hereby  promises  to pay to  CEDE & CO.,  or
registered  assigns,  the  principal  amount of           Dollars  ($      ), on
[Date] ("Stated  Maturity")  (unless and to the extent earlier redeemed prior to
such  date) and to pay  interest  thereon  from  [Date] or from the most  recent
Interest Payment Date (as defined below) to which interest has been paid or duly
provided for in arrears on each [Date], [Date],  [Date], and [Date],  commencing
[Date]  (each,  an  "Interest  Payment  Date"),   and  at  maturity  or  earlier
redemption,  until the principal  hereof is paid or made  available for payment.
Interest  payments on this Note shall include  interest accrued to but excluding
each Interest Payment Date. The interest so payable, and punctually paid or duly
provided for, on any Interest  Payment Date shall,  as provided in the Indenture
(as  defined  below),  be paid to the  Person in whose name this Note (or one or
more  Predecessor  Securities)  is  registered  at the close of  business on the
Regular Record Date, which shall be the 15th calendar


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<PAGE>

day (whether or not a Business Day) next preceding  such Interest  Payment Date.
Except as otherwise provided in the Indenture,  any interest not punctually paid
or duly provided for on any Interest Payment Date  ("Defaulted  Interest") shall
forthwith  cease to be  payable to the Holder on the  Regular  Record  Date with
respect to such  Interest  Payment Date by virtue of having been such Holder and
may  either  (1) be paid to the  Person in whose  name this Note (or one or more
Predecessor  Securities)  is  registered  at the close of  business on a Special
Record  Date  for the  payment  of such  Defaulted  Interest  to be fixed by the
Trustee (as defined  below),  notice of which shall be given to Holders of Notes
not less than 10 days prior to such Special  Record Date,  or (2) be paid at any
time in any other lawful manner not  inconsistent  with the  requirements of any
securities  exchange  on which the Notes may be listed,  and upon such notice as
may be required by such  exchange,  all as more fully provided in the Indenture.
Payment  of the  principal  of and  interest  on this Note  shall be made at the
Corporate  Trust Office of the Trustee or at the office or agency of the Company
maintained  for that purpose in the Borough of Manhattan,  The City of New York,
and at any other office or agency maintained by the Company for such purpose, in
such coin or currency of the United  States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however, that
at the option of the Company, payment of interest may be made by check mailed to
the address of the Person  entitled  thereto as such address shall appear in the
Security Register and provided,  further,  that the Holder of this Note shall be
entitled to receive  payments of  principal of and interest on this Note by wire
transfer  of  immediately   available   funds  if   appropriate   wire  transfer
instructions  have been received in writing by the Trustee not less than 15 days
prior to the applicable payment date.

      Reference is hereby made to the further  provisions of this Note set forth
below,  which further  provisions shall for all purposes have the same effect as
if set forth at this place.

      Unless the certificate of  authentication  hereon has been executed by the
Trustee or its duly appointed  co-authenticating agent by manual signature, this
Note shall not be  entitled to any benefit  under the  Indenture  or be valid or
obligatory for any purpose.


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<PAGE>

      IN WITNESS  WHEREOF,  Public  Service  Electric and Gas Company has caused
this  Instrument  to be signed by the  signature or  facsimile  signature of its
Chairman of the Board,  its  President or a Vice  President  and attested by its
Secretary or an Assistant Secretary by his signature or a facsimile thereof, and
its corporate seal or a facsimile of its corporate  seal to be affixed  hereunto
or imprinted hereon.

                  (SEAL)                 PUBLIC SERVICE ELECTRIC AND GAS COMPANY

                                         By
                                            ------------------------------------
                                         Title: Vice President and Treasurer

Attest:

-------------------------------
Title: Secretary

Dated:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

FIRST UNION NATIONAL BANK, as Trustee

By:
   --------------------------------
         Authorized Signatory


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<PAGE>

      This  Note  is  one  of  a  duly  authorized   issue  of  securities  (the
"Securities")  of the Company  (which term  includes any  successor  corporation
under the Indenture hereinafter referred to) issued and to be issued pursuant to
such  Indenture.  This Security is one of a series  designated by the Company as
its [Series Designation] (the "Notes") and will be subject,  without the consent
of the holders of any series of Securities,  to the issuance of additional Notes
in the future  having the same terms,  other than the date of original  issuance
and the date on which interest  begins to accrue,  so as to form one series with
the Notes.  The Indenture does not limit the aggregate  principal  amount of the
Notes or the Securities.

      The  Company  issued  this  Note  pursuant  to an  Indenture,  dated as of
December  1, 2000 (the  "Indenture"  which  term,  for the purpose of this Note,
shall include the Officers'  Certificate  dated  [Date],  delivered  pursuant to
Section 301 of the  Indenture),  between  the  Company and First Union  National
Bank, as trustee (the "Trustee," which term includes any successor trustee under
the  Indenture),  to which  Indenture and all  indentures  supplemental  thereto
reference is hereby made for a statement of the respective  rights,  limitations
of rights,  duties and  immunities  thereunder  of the Company,  the Trustee and
Holders of the Notes and of the terms  upon which the Notes are,  and are to be,
authenticated and delivered.

      The Notes are  issuable as  Registered  Securities,  without  coupons,  in
denominations  of $1,000 and any amount in excess  thereof  that is an  integral
multiple  of  $1,000.  As  provided  in the  Indenture  and  subject  to certain
limitations  therein  set forth,  Notes are  exchangeable  for a like  aggregate
principal  amount  of Notes of like  tenor of any  authorized  denomination,  as
requested by the Holder  surrendering  the same,  upon  surrender of the Note or
Notes to be exchanged at any office or agency described below where Notes may be
presented for registration of transfer.

      Interest  on this Note shall  accrue  from [Date] (or from the most recent
Interest  Payment Date to which interest has been paid or duly provided for) and
be payable  quarterly  in arrears,  on each [Date],  [Date],  [Date] and [Date],
commencing  [Date].  The interest rate on the Notes shall be reset quarterly and
the Notes shall bear interest at a per annum rate  (computed on the basis of the
actual number of days elapsed over a 360-day year) equal to [details of interest
rate].  Interest on this Note shall  accrue from and  including  the most recent
Interest  Payment Date to which  interest has been paid or duly  provided for to
but excluding the applicable  Interest Payment Date,  Stated Maturity or date of
earlier redemption, as the case may be.

      If any Interest Payment Date (other than at Stated Maturity) or redemption
date would  otherwise  be a day that is not a Business  Day (as defined  below),
such Interest  Payment  Date, or redemption  date shall be postponed to the next
succeeding day that is a Business Day.


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<PAGE>

      This Note may not be redeemed by the Company prior to [Date]. On that date
and on the same day in each succeeding month, the Notes may be redeemed,  at the
option of the Company,  in whole or in part,  upon notice  thereof (as described
below)  given  not less  than 15 nor more  than 60  calendar  days  prior to the
redemption date. In the event that less than all of the outstanding Notes are to
be  redeemed,  the Notes to be redeemed  shall be selected by such method as the
Company shall deem fair and appropriate. The redemption price for any redemption
(the  "Redemption  Price")  shall be equal to % of the  principal  amount  to be
redeemed  plus any accrued and unpaid  interest to the date of  redemption  (the
"Redemption Date").

      All notices of redemption  shall state the redemption date, the Redemption
Price,  if  fewer  than  all  the  outstanding  Notes  are to be  redeemed,  the
identification  (and, in the case of partial redemption,  the principal amounts)
of the  particular  Notes  to be  redeemed,  that  on the  Redemption  Date  the
Redemption  Price  shall  become  due and  payable  upon each  Note,  or portion
thereof, to be redeemed,  that interest on each Note, or portion thereof, called
for  redemption  shall cease to accrue on the  Redemption  Date and the place or
places where Notes may be surrendered for redemption.

      In the event of  redemption of this Note in part only, a new Note or Notes
of like tenor for the  unredeemed  portion  hereof shall be issued in authorized
denominations in the name of the Holder hereof upon the cancellation hereof.

      For all  purposes  of this  Note and the  Indenture,  unless  the  context
otherwise requires,  all provisions relating to the redemption by the Company of
this Note shall relate, in the case that this Note is redeemed or to be redeemed
by the Company only in part to that portion of the principal amount of this Note
that has been or is to be redeemed.

      If an Event of Default  (as set forth in the  Indenture)  with  respect to
Notes shall occur and be continuing,  the principal of the Notes may be declared
due and payable in the manner and with the effect provided in the Indenture.

      The Indenture permits,  in certain  circumstances  therein specified,  the
amendment  thereof  without the consent of the  Holders of the  Securities.  The
Indenture  also  permits,  with  certain  exceptions  as therein  provided,  the
amendment  thereof and the modification of the rights and obligations  under the
Indenture  of the  Company and the rights of Holders of the  Securities  of each
series to be  affected  under the  Indenture  at any time by the Company and the
Trustee  with the consent of the Holders of a majority  in  aggregate  principal
amount of the Securities at the time  Outstanding of each series to be affected.
The Indenture also contains  provisions  permitting the Holders of a majority in
aggregate  principal  amount  of the  Securities  of  each  series  at the  time
Outstanding,  on behalf of the Holders of all the Securities of such series,  to
waive  compliance  by the Company with certain  provisions  of the Indenture and
certain past  defaults  under the  Indenture  and their  consequences.  Any such
consent  or waiver by the Holder of this Note shall be  conclusive  and  binding
upon such Holder and upon all


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<PAGE>

future  Holders of this Note and of any Note  issued  upon the  registration  of
transfer  hereof  or in  exchange  herefor  or in lieu  hereof,  whether  or not
notation of such consent or waiver is made upon this Note.

      No  reference  herein to the  Indenture  and no  provision  of this  Note,
subject to the provisions for  satisfaction and discharge in Article Four of the
Indenture,  shall  alter or  impair  the  obligation  of the  Company,  which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

      The Indenture permits the Company, by irrevocably  depositing,  in amounts
and  maturities  sufficient  to pay and  discharge  at the  Stated  Maturity  or
redemption date, as the case may be, the entire  indebtedness on all Outstanding
Notes, cash or U.S. Government  Obligations with the Trustee in trust solely for
the benefit of the Holders of all  Outstanding  Notes,  to defease the Indenture
with respect to such Notes, and upon such deposit the Company shall be deemed to
have paid and  discharged  its entire  indebtedness  on such Notes.  Thereafter,
Holders  would be able to look only to such trust fund for payment of  principal
and interest at the Stated Maturity or redemption date, as the case may be.

      As provided in the  Indenture and subject to certain  limitations  therein
set forth, the transfer of Notes is registrable in the Security  Register,  upon
surrender of a Note for  registration  of transfer at the Corporate Trust Office
of the  Trustee  or at the  office or agency of the  Company  in the  Borough of
Manhattan,  The City of New York,  or at such other  offices or  agencies as the
Company may designate,  duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security  Registrar duly
executed by, the Holder hereof or his attorney duly  authorized in writing,  and
thereupon one or more new Notes of like tenor, of authorized  denominations  and
for the same  aggregate  principal  amount,  shall be issued  to the  designated
transferee or transferees.

      No  service  charge  shall  be made by the  Company,  the  Trustee  or the
Security  Registrar for any such  registration of transfer or exchange,  but the
Company  may  require  payment  of a sum  sufficient  to cover  any tax or other
governmental  charge  payable in  connection  therewith  (other  than  exchanges
pursuant  to Sections  304,  906 or 1107 of the  Indenture,  not  involving  any
transfer).

      Prior to due presentment of this Note for  registration  of transfer,  the
Company,  the  Trustee and any agent of the Company or the Trustee may treat the
Person in whose  name  this  Note is  registered  as the  owner  hereof  for all
purposes,  whether or not this Note be overdue,  and neither  the  Company,  the
Trustee nor any such agent shall be affected by notice to the contrary.

      This Note shall be governed by and construed in accordance with the law of
the State of New Jersey without regard to principles of conflicts of laws.


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<PAGE>

      All  undefined  terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

                                  ABBREVIATIONS

      The following  abbreviations,  when used in the inscription on the face of
this  instrument,  shall be  construed  as though they were  written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common        UNIF GIFT MIN ACT _______Custodian _______
                                                        (Cust.)          (Minor)

TEN ENT - as tenants by the entireties     Under Uniform Gifts to Minor Act
                                                       (State)

JT TEN - as joint tenants with right of survivor-
         ship and not as tenants in common

     Additional abbreviations may also be used though not in the above list.

                                   ----------

FOR VALUE RECEIVED,  the undersigned hereby sells(s),  assign(s) and transfer(s)
unto

Please Insert Social Security or Employer
Identification number of assignee

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                   Please Print or Typewrite Name and Address
                      Including Postal Zip Code of Assignee

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<PAGE>

The within Security and all rights thereunder,  hereby irrevocably  constituting
and appointing  __________________________ attorney to transfer said Security on
the books of the Company, with full power of substitution in the premises.

Dated:  __________                                     _______________________
                                                              Signature

NOTICE: The signature to this  assignment  must  correspond  with the name as it
        appears  upon the face of the within Note in every  particular,  without
        alteration or enlargement or any change whatever.

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