Exhibit 12b

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|---------------------------------------------- |  | --------------------------------- | ---- | ---- | - | ---- |  | ---- | ---- | ---- | - | ---- |  | - | ---- | 
|                                               |  | For the Years Ended
 December 31, |     
|                                               |  |                                   |      |      |   |      |  |      |      |      |  
|                                               |  | 2008                              |      | 2007 |   | 2006 |  | 2005 |      | 2004 |  
|                                               |  |                                   |      |      |   |      |  |      |      |      |  
|                                               |  | (Millions, except ratios)         |     
|Earnings as Defined in Regulation S-K (A):     |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Pre-tax Income from Continuing Operations      |  | $                                 | 592  |      | $ | 637  |  | $    | 448  |      | $ | 583  |  | $ | 592  | 
|Fixed Charges                                  |  |                                   | 325  |      |   | 332  |  |      | 346  |      |   | 342  |  |   | 362  | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Earnings                                       |  | $                                 | 917  |      | $ | 969  |  | $    | 794  |      | $ | 925  |  | $ | 954  | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Fixed Charges as Defined in Regulation S-K (B) |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Interest Expense                               |  | $                                 | 325  |      | $ | 332  |  | $    | 346  |      | $ | 342  |  | $ | 362  | 
|Interest Factor in Rentals                     |  |                                   |     |      |   |     |  |      |     |      |   |     |  |   |     | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Total Fixed Charges                            |  | $                                 | 325  |      | $ | 332  |  | $    | 346  |      | $ | 342  |  | $ | 362  | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 
|Ratio of Earnings to Fixed Charges             |  |                                   | 2.82 |      |   | 2.92 |  |      | 2.29 |      |   | 2.70 |  |   | 2.64 | 
|                                               |  |                                   |      |      |   |      |  |      |      |      |   |      |  |   |      | 

|    |                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | The term earnings shall
 be defined as pretax income from continuing operations. Add to pretax 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.                               

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