EXHIBIT 12c

PUBLIC
SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Plus Preferred Security Dividend Requirements

|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|----------------------------------------------------------------------------- |  | --------------------------------- | ---- | ---- | - | ---- | - | ---- | ---- | ---- | - | ---- | - | - | ---- | -
|                                                                              |  | For the Years Ended
 December 31, |     
|                                                                              |  |                                   |     
|                                                                              |  | 2007                              |      | 2006 |   | 2005 |   | 2004 |      | 2003 |  
|                                                                              |  |                                   |     
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Earnings as Defined in
 Regulation S-K (A):                                   |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Pre-tax Income from
 Continuing Operations                                    |  | $                                 | 637  |      | $ | 448  |   | $    | 583  |      | $ | 592  |   | $ | 376  |  
|Fixed Charges                                                                 |  |                                   | 339  |      |   | 353  |   |      | 349  |      |   | 369  |   |   | 397  |  
|Preferred Securities Pre
 Tax                                                 |  |                                   | (7   | )    |   | (7   | ) |      | (7   | )    |   | (7   | ) |   | (7   | )
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Earnings                                                                      |  | $                                 | 969  |      | $ | 794  |   | $    | 925  |      | $ | 954  |   | $ | 766  |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Fixed Charges as Defined in
 Regulation S-K (B)                               |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Interest Expense                                                              |  | $                                 | 332  |      | $ | 346  |   | $    | 342  |      | $ | 362  |   | $ | 390  |  
|Interest Factor in Rentals                                                    |  |                                   |     |      |   |     |   |      |     |      |   |     |   |   |     |  
|Preferred Securities
 Dividends                                               |  |                                   | 4    |      |   | 4    |   |      | 4    |      |   | 4    |   |   | 4    |  
|Adjustment to state
 Preferred Securities Dividends on a pre-income tax basis |  |                                   | 3    |      |   | 3    |   |      | 3    |      |   | 3    |   |   | 3    |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Total Fixed Charges                                                           |  | $                                 | 339  |      | $ | 353  |   | $    | 349  |      | $ | 369  |   | $ | 397  |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  
|Ratio of Earnings to Fixed
 Charges                                           |  |                                   | 2.86 |      |   | 2.25 |   |      | 2.65 |      |   | 2.59 |   |   | 1.93 |  
|                                                                              |  |                                   |      |      |   |      |   |      |      |      |   |      |   |   |      |  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 (a) the amount of any
 interest capitalized during the period (b) the actual amount of any preferred
 securities dividend requirements of majority owned subsidiaries (c) preferred
 stock dividends which were included in such fixed charges amount but not
 deducted in the determination of pre-tax income.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(B) | Fixed Charges represent (a)
 interest, whether expensed or capitalized, (b) amortization of debt discount
 and premium expense (c) an estimate of interest implicit in rentals and (d)
 preferred securities dividend requirements of majority owned subsidiaries and
 preferred stock dividends, increased to reflect the pre-tax earnings
 requirement for PSE&G.                                                                                                     

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