Supplemental Indenture, dated November 1, 2008



 Exhibit 4a(29) 
 SUPPLEMENTAL MORTGAGE 
  
  
 Supplemental Indenture

 Dated November 1, 2008 
  
  
 SUPPLEMENTAL TO 
 FIRST AND REFUNDING MORTGAGE 

 DATED AUGUST 1, 1924 
  
  
 PUBLIC SERVICE
ELECTRIC AND GAS COMPANY 
 TO 
 US BANK NATIONAL ASSOCIATION 
 Trustee 
 21 South Street 
 Morristown, New Jersey 07960 
  
  
 PROVIDING FOR
THE ISSUE OF 
 $275,000,000 FIRST AND REFUNDING MORTGAGE BONDS, 
 MEDIUM-TERM NOTES SERIES F 
  
  
 RECORD IN MORTGAGE BOOK AND RETURN
TO: 
 JAMES T. FORAN, ESQ. 
 80 PARK PLAZA, T5B 
 NEWARK, N.J. 07102-4194 
 Prepared by 
 (DONALD S. LEIBOWITZ, ESQ.)








 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 RECITALS
	  	1
	 FORM OF BOND
	  	3
	 FORM OF CERTIFICATE OF
AUTHENTICATION
	  	5
	 GRANTING CLAUSES
	  	6
			
		  	ARTICLE I.	  	
		  	BONDS OF THE MEDIUM-TERM NOTES SERIES F.	  	
		
	 DESCRIPTION OF SERIES
	  	7
			
		  	ARTICLE II.	  	
		  	REDEMPTION OF BONDS OF MEDIUM-TERM NOTES
SERIES F.	  	
			
	 SECTION 2.01.
	  	 Redemption—Redemption Price
	  	7
	 SECTION 2.02.
	  	 Redemptions Pursuant to Section 4C of Article Eight of the Indenture
	  	8
	 SECTION 2.03.
	  	 Interest on Called Bonds to Cease
	  	8
	 SECTION 2.04.
	  	 Bonds Called in Part
	  	8
	 SECTION 2.05.
	  	 Provisions of Indenture Not Applicable
	  	8
			
		  	ARTICLE III.	  	
		  	CREDITS WITH RESPECT TO BONDS OF THE	  	
		  	MEDIUM-TERM NOTES SERIES F.	  	
			
	 SECTION 3.01.
	  	 Credits
	  	8
	 SECTION 3.02.
	  	 Certificate of the Company
	  	8
			
		  	ARTICLE IV.	  	
		  	MISCELLANEOUS.	  	
			
	 SECTION 4.01.
	  	 Authentication of Bonds of Medium-Term Notes Series F
	  	9
	 SECTION 4.02.
	  	 Additional Restrictions on Authentication of Additional Bonds Under Indenture
	  	9
	 SECTION 4.03.
	  	 Restriction on Dividends
	  	9
	 SECTION 4.04.
	  	 Use of Facsimile Seal and Signatures
	  	9
	 SECTION 4.05.
	  	 Time for Making of Payment
	  	9
	 SECTION 4.06.
	  	 Effective Period of Supplemental Indenture
	  	9
	 SECTION 4.07.
	  	 Effect of Approval of Board of Public Utilities of the State of New Jersey
	  	9
	 SECTION 4.08.
	  	 Execution in Counterparts
	  	10
	 ACKNOWLEDGEMENTS
	  	12
	 CERTIFICATE OF RESIDENCE
	  	13








 SUPPLEMENTAL INDENTURE, dated the 1st day of November 2008, for convenience of reference and
effective from the time of execution and delivery hereof, between PUBLIC SERVICE ELECTRIC AND GAS COMPANY, a corporation organized under the laws of the State
of New Jersey, hereinafter called the “Company”, party of the first part, and US Bank National Association, a national banking association organized under the laws of the United States of America, as successor Trustee to Wachovia Bank,
National Association (previously known as Fidelity Union Trust Company) under the indenture dated August 1, 1924, below mentioned, hereinafter called the “Trustee”, party of the second part. 
 WHEREAS, on July 25, 1924, the Company executed and delivered to FIDELITY UNION TRUST
COMPANY, a certain indenture dated August 1, 1924 (hereinafter called the “Indenture”) to secure and to provide for the issue of First and Refunding Mortgage Gold Bonds of the Company; and 
 WHEREAS, the Indenture has been recorded in the following counties of the State of New Jersey, in the offices, and therein in
the books and at the pages, as follows: 
  

							
	 County
	  	Office	  	Book Number	  	Page
Number
	Atlantic	  	Clerk’s	  	1955 of Mortgages	  	160
	Bergen	  	Clerk’s	  	    94 of Chattel Mortgages	  	123 etc.
	Burlington	  	Clerk’s	  	  693 of Mortgages
    52 of Chattel Mortgages	  	88 etc.
 Folio 8 etc.

	Camden	  	Register’s	  	  177 of Mortgages
     45 of Chattel
Mortgages
	  	Folio 354 etc.
 184
etc.

	Cumberland	  	Clerk’s	  	  239 of Mortgages
   786 of
Mortgages
	  	1 etc.
 638 & c.

	Essex	  	Register’s	  	  437 of Chattel Mortgages	  	1-48
		  		  	T-51 of Mortgages	  	341-392
	Gloucester	  	Clerk’s	  	    34 of Chattel Mortgages	  	123 etc.
	Hudson	  	Register’s	  	  142 of Mortgages
   453 of Chattel
Mortgages
	  	7 etc.
 9 etc.

		  		  	1245 of Mortgages	  	484, etc.
	Hunterdon	  	Clerk’s	  	  151 of Mortgages	  	344
	Mercer	  	Clerk’s	  	    67 of Chattel Mortgages	  	1 etc.
	Middlesex	  	Clerk’s	  	  384 of Mortgages
   113 of Chattel
Mortgages
	  	1 etc.
 3 etc.

		  		  	  437 of Mortgages	  	294 etc.
	Monmouth	  	Clerk’s	  	  951 of Mortgages	  	291 & c.
	Morris	  	Clerk’s	  	  N-3 of Chattel Mortgages	  	446 etc.
		  		  	F-10 of Mortgages	  	269 etc.
	Ocean	  	Clerk’s	  	1809 of Mortgages	  	40
	Passaic	  	Register’s	  	 M-6 of Chattel Mortgages	  	178, etc.
		  		  	R-13 of Mortgages	  	268 etc.
	Salem	  	Clerk’s	  	  267 of Mortgages	  	249 etc.
	Somerset	  	Clerk’s	  	    46 of Chattel Mortgages	  	207 etc.
	Sussex	  	Clerk’s	  	N-10 of Mortgages
   123 of Mortgages
	  	1 etc.
 10 & c.

	Union	  	Register’s	  	9584 of Mortgages	  	259 etc.
	Warren	  	Clerk’s	  	  124 of Mortgages	  	141 etc.

  

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 and 
 WHEREAS, the Indenture has also been recorded in the following counties of the Commonwealth of Pennsylvania, in the offices, and therein in the books and at the pages, as follows:

  

							
	 County
	  	Office	  	Book Number	  	Page
Number
	 Adams
	  	Recorder’s	  	22 of Mortgages	  	105
	 Armstrong
	  	Recorder’s	  	208 of Mortgages	  	381
	 Bedford
	  	Recorder’s	  	90 of Mortgages	  	917
	 Blair
	  	Recorder’s	  	671 of Mortgages	  	430
	 Cambria
	  	Recorder’s	  	407 of Mortgages	  	352
	 Cumberland
	  	Recorder’s	  	500 of Mortgages	  	136
	 Franklin
	  	Recorder’s	  	285 of Mortgages	  	373
	 Huntington
	  	Recorder’s	  	128 of Mortgages	  	47
	 Indiana
	  	Recorder’s	  	197 of Mortgages	  	281
	 Lancaster
	  	Recorder’s	  	984 of Mortgages	  	1
	 Montgomery
	  	Recorder’s	  	5053 of Mortgages	  	1221
	 Westmoreland
	  	Recorder’s	  	1281 of Mortgages	  	198
	 York
	  	Recorder’s	  	31-V of Mortgages	  	446

 and 
 WHEREAS, the Indenture granted, bargained, sold, aliened, remised, released, conveyed, confirmed, assigned, transferred and
set over unto the Trustee certain property of the Company, more fully set forth and described in the Indenture, then owned or which might thereafter be acquired by the Company; and 
 WHEREAS, the Company, by various supplemental indentures, supplemental to the Indenture, the last of which was dated
March 1, 2008, has granted, bargained, sold, aliened, remised, released, conveyed, confirmed, assigned, transferred and set over unto the Trustee certain property of the Company acquired by it after the execution and delivery of the Indenture;
and 
 WHEREAS, since the execution and delivery of said supplemental indenture dated March 1, 2008, the
Company has acquired property which, in accordance with the provisions of the Indenture, is subject to the lien thereof and the Company desires to confirm such lien; and 
 WHEREAS, the Indenture has been amended or supplemented from time to time; and 
 WHEREAS, it is provided in the Indenture that no bonds other than those of the 5-1/2% Series due 1959 therein authorized may be issued thereunder unless a supplemental indenture providing
for the issue of such additional bonds shall have been executed and delivered by the Company to the Trustee; and 
 WHEREAS, the Company is making provisions for the issuance and sale of its Secured Medium-Term Notes, Series F (the “Series F Notes”), to be issued under an Indenture of Trust (the “Note Indenture”) dated
as of July 1, 1993 between the Company and The Chase Manhattan Bank (National Association) as predecessor trustee (The Bank of New York Mellon, as successor trustee to the predecessor trustee), as Trustee (the “Note Trustee”); and

 WHEREAS, such Note Indenture provides, among other things, for the pledge and delivery by the Company of a
series of First and Refunding Mortgage Bonds of the Company to evidence the Company’s obligation to pay the principal and interest with respect to outstanding Series F Notes; and for such purpose and in order to service and secure payment of
the principal and interest in respect of the Series F Notes, the Company desires to provide for the issue of $275,000,000 aggregate principal amount of bonds under the Indenture of a series to be designated as “First and Refunding Mortgage
Bonds, Medium-Term Notes Series F” (hereinafter sometimes called “Bonds of the Medium-Term Notes Series F”); and 
  

 2 








 WHEREAS, the text of the Bonds of the Medium-Term Notes Series F and of the
certificate of authentication to be borne by the Bonds of the Medium-Term Notes Series F shall be substantially of the following tenor: 
 (FORM OF BOND) 
 This Bond is not transferable except as provided in the
Indenture and in the Indenture of Trust dated as of July 1, 1993 between the Company and The Chase Manhattan Bank (National Association) (The Bank of New York Mellon, successor trustee) as Trustee. 
  

				
	 REGISTERED
 NUMBER
	  	REGISTERED
AMOUNT
	 R
	  	$	275,000,000

 PUBLIC SERVICE
ELECTRIC AND GAS COMPANY 
 FIRST AND REFUNDING MORTGAGE
BOND, 
 MEDIUM-TERM NOTES SERIES F 
 Public Service Electric and Gas Company (hereinafter called the “Company”), a corporation of the State of New Jersey, for value
received, hereby promises to pay to The Bank of New York Mellon as succssor trustee to The Chase Manhattan Bank (National Association)), under the Indenture of Trust dated as of July 1, 1993 between the Company and such trustee, or registered
assigns, on the surrender hereof, the principal sum of Two Hundred Seventy-Five Million Dollars, on November 1, 2013, and to pay interest thereon from the date hereof, at the rate of 10% per annum, and until payment of said principal sum,
such interest to be payable May 1 and November 1 in each year; provided, however, that the Company shall receive certain credits against such obligations as set forth in the Supplemental Indenture dated November 1, 2008 referred to
below. 
 Both the principal hereof and interest hereon shall be paid at the principal corporate trust office of US Bank
National Association in the City of Morristown, State of New Jersey, or (at the option of the registered owner) at the corporate trust office of any paying agent appointed by the Company, in such coin or currency of the United States of America as
at the time of payment shall constitute legal tender for the payment of public and private debts; provided, however, that any such payments of principal and interest shall be subject to receipt of certain credits against such payment obligations as
set forth in the Supplemental Indenture dated November 1, 2008 referred to below. 
 This Bond is one of the First and
Refunding Mortgage Bonds of the Company issued and to be issued under and pursuant to, and all equally secured by, an indenture of mortgage or deed of trust dated August 1, 1924, as supplemented and amended by supplemental indentures thereto,
including the Supplemental Indenture dated November 1, 2008, duly executed by the Company and US Bank National Association as Trustee. This Bond is one of the Bonds of the Medium-Term Notes Series F, which series is limited to the aggregate
principal amount of $275,000,000 and is issued pursuant to said Supplemental Indenture dated November 1, 2008. Reference is hereby made to said indenture and all supplements thereto for a specification of the principal amount of Bonds from time
to time issuable thereunder, and for a description of the properties mortgaged and conveyed or assigned to said Trustee or its successors, the nature and extent of the security, and the rights of the holders of said Bonds and any coupons appurtenant
thereto, and of the Trustee in respect of such security. 
  

 3 








 In and by said indenture, as amended and supplemented, it is provided that with the written
approval of the Company and the Trustee, any of the provisions of said indenture may from time to time be eliminated or modified and other provisions may be added thereto provided the change does nor alter the annual interest rate, redemption price
or date, date of maturity or amount payable on maturity of any then outstanding Bond or conflict with the Trust Indenture Act of 1939 as then in effect, and provided the holders of 85% in principal amount of the Bonds secured by said indenture and
then outstanding (including, if such change affect the Bonds of one or more series but less than all series then outstanding, a like percentage of the then outstanding Bonds of each series affected by such change, and excluding Bonds owned or
controlled by the Company or by the parties owning at least 10% of the outstanding voting stock of the Company, as more fully specified in said indenture) consent in writing thereto, all as more fully set forth in said indenture, as amended and
supplemented. 
 First and Refunding Mortgage Bonds issuable under said indenture are issuable in series, and the Bonds of any
series may be for varying principal amounts and in the form of coupon bonds and of registered bonds without coupons, and the Bonds of any one series may differ from the Bonds of any other series as to date, maturity, interest rate and otherwise, all
as in said indenture provided and set forth. The Bonds of the Medium-Term Notes Series F, in which this Bond is included, are designated “First and Refunding Mortgage Bonds, Medium-Term Notes Series F”. 
 In case of the happening of an event of default as specified in said indenture and said supplemental indenture dated March 1, 1942, the
principal sum of the Bonds of this series may be declared or may become due and payable forthwith, in the manner and with the effect in said indenture provided. 
 The Bonds of this series are subject to redemption as provided in the Supplemental Indenture dated November 1, 2008. 
 This Bond is transferable, but only as provided in said indenture and the Indenture of Trust dated as of July 1, 1993 between the Company and The Chase Manhattan Bank (National Association) as
predecessor trustee (The Bank of New York Mellon, as successor trustee to the predecessor trustee), as trustee, upon surrender hereof, by the registered owner in person or by attorney duly authorized in writing, at either of said offices where the
principal hereof and interest hereon are payable; upon any such transfer a new fully registered Bond similar hereto will be issued to the transferee. This Bond may in like manner be exchanged for one or more new fully registered Bonds of the same
series of other authorized denominations but of the same aggregate principal amount. No service charge shall be made for any such transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto. The Company and the Trustee hereunder and any paying agent may deem and treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of or on
account of the principal hereof and the interest hereon and for all other purposes; and neither the Company nor the Trustee hereunder nor any paying agent shall be affected by any notice to the contrary. 
 The Bonds of this series are issuable only in fully registered form, in any denomination authorized by the Company. 
 No recourse under or upon any obligation, covenant or agreement contained in said indenture or in any indenture supplemental thereto, or in
any Bond issued thereunder, or because of any indebtedness arising thereunder, shall be had against any incorporator, or against any past, present or future stockholder, officer, or director, as such, of the Company or of any successor corporation,
either directly or through the Company or any successor corporation, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, it being expressly agreed
and understood that said indenture, any indenture supplemental thereto and the obligations issued thereunder, are solely corporate obligations, and that no personal liability whatever shall attach to, or be incurred by, such incorporators,
stockholders, officers or directors, as such, of the Company, or of any successor corporation, or any of them, because of the incurring of the indebtedness thereby authorized, or under or by reason of any of the obligations, covenants or agreements
contained in the indenture or in any indenture supplemental thereto or in any of the Bonds issued thereunder, or implied therefrom. 
  

 4 








 This Bond shall not be entitled to any security or benefit under said indenture, as amended
and supplemented, and shall not become valid or obligatory for any purpose, until the certificate of authentication, hereon endorsed, shall have been signed by US Bank National Association as Trustee, or by its successor in trust under said
indenture. 
 IN WITNESS WHEREOF, the Company has caused this Bond to be duly
executed by its proper officers under its corporate seal. 
 Dated 
  

			
	PUBLIC SERVICE ELECTRIC AND GAS COMPANY,
		
	By	 	 
		 	(Vice) President


 (Seal) 

Attest: 
  

	
	
	  
	(Assistant) Secretary

 (FORM
OF CERTIFICATE OF AUTHENTICATION) 
 CERTIFICATE
OF AUTHENTICATION 
 This Bond is one of the Bonds of the series designated therein which is
described in the within-mentioned indenture and supplemental indenture dated November 1, 2008, as secured thereby. 
  

			
	US BANK NATIONAL ASSOCIATION, TRUSTEE,
		
	By	 	 
		 	Authorized Signatory


  

 5 








 WHEREAS, the execution and delivery of this supplemental indenture have been
duly authorized by the Board of Directors of the Company; and 
 WHEREAS, the Company represents that all things
necessary to make the bond of the series hereinafter described, when duly authenticated by the Trustee and issued by the Company, a valid, and legal obligation of the Company, and to make this supplemental indenture a valid and binding agreement
supplemental to the Indenture, have been done and performed: 
 NOW, THEREFORE,
THIS SUPPLEMENTAL INDENTURE WITNESSETH that the Company, in consideration of the premises and the execution and delivery by the Trustee of this supplemental indenture, and in pursuance of
the covenants and agreements contained in the Indenture and for other good and valuable consideration, the receipt of which is hereby acknowledged, has granted, bargained, sold, aliened, remised, released, conveyed, confirmed, assigned, transferred
and set over, and by these presents does grant, bargain, sell, alien, remise, release, convey, confirm, assign, transfer and set over unto the Trustee, its successors and assigns, forever, all the right, title and interest of the Company in and to
all property of every kind and description (except cash, accounts and bills receivable and all merchandise bought, sold or manufactured for sale in the ordinary course of the Company’s business, stocks, bonds or other corporate obligations or
securities, other than such as are described in Part V of the Granting Clauses of the Indenture, not acquired with the proceeds of bonds secured by the Indenture, and except as in the Indenture and herein otherwise expressly excluded) acquired by
the Company since the execution and delivery of the supplemental indenture dated March 1, 2008 , subsequent to the Indenture (except any such property duly released from, or disposed of, free from the lien of the Indenture, in accordance with
the provisions thereof) and all such property which at any time hereafter may be acquired by the Company; 
 All of which
property it is intended shall be included in and granted by this supplemental indenture and covered by the lien of the Indenture as heretofore and hereby amended and supplemented; 
 UNDER AND SUBJECT to any encumbrances or mortgages existing on property acquired by the Company
at the time of such acquisition and not heretofore discharged of record; and 
 SUBJECT also, to the exceptions,
reservations and provisions in the Indenture and in this supplemental indenture recited, and to the liens, reservations, exceptions, limitations, conditions and restrictions imposed by or contained in the several deeds, grants, franchises and
contracts or other instruments through which the Company acquired or claims title to the aforesaid property; and Subject, also, to the existing leases, to liens on easements or rights of way, to liens for taxes, assessments and governmental charges
not in default or the payment of which is deferred, pending appeal or other contest by legal proceedings, pursuant to Section 4 of Article Five of the indenture, or the payment of which is deferred pending billing, transfer of title or final
determination of amount, to easements for alleys, streets, highways, rights of way and railroads that may run across or encroach upon the said property, to joint pole and similar agreements, to undetermined liens and charges, if any, incidental to
construction, and other encumbrances permitted by the indenture as heretofore and hereby amended and supplemented; 
 TO HAVE AND TO HOLD the property hereby conveyed or assigned, or intended to be conveyed or assigned, unto the Trustee, its successor or successors and assigns,
forever; 
 IN TRUST, NEVERTHELESS, upon the terms, conditions and trusts set forth
in the Indenture as heretofore and hereby amended and supplemented, to the end that the said property shall be subject to the lien of the Indenture as heretofore and hereby amended and supplemented, with the same force and effect as though said
property had been included in the Granting Clauses of the Indenture at the time of the execution and delivery thereof; 
  

 6 








 AND THIS SUPPLEMENTAL INDENTURE
FURTHER WITNESSETH that for the considerations aforesaid, it is hereby covenanted between the Company and the Trustee as follows: 
 ARTICLE I. 
 BONDS OF THE
MEDIUM-TERM NOTES SERIES F. 
 The series of bonds authorized by
this supplemental indenture to be issued under and secured by the Indenture shall be designated “First and Refunding Mortgage Bonds, Medium-Term Notes Series F”; shall be limited to the aggregate principal amount of $275,000,000; shall be
issued initially to the Note Trustee and shall mature and bear interest as set forth in the form of bond set forth herein; provided, however, that the Company shall receive certain credits against principal and interest as set forth in
Section 3.01 hereof. The date of each Bond of the Medium-Term Notes Series F shall be the interest payment date next preceding the date of authentication, unless such date of authentication be an interest payment date, in which case the date
shall be the date of authentication, or unless such date of authentication be prior to the first semi-annual interest payment date, in which case the date shall be November 1, 2008. 
 Bonds of the Medium-Term Notes Series F shall be issuable only in the form of fully registered bonds in any denomination authorized by the
Company. Interest on the Bonds of the Medium-Term Notes Series F shall be payable semi-annually in arrears on May 1 and November 1 of each year, payable initially on May 1, 2009, subject to receipt of certain credits against principal
and interest as set forth in Section 3.01 hereof and shall be payable as to both principal and interest in such coin or currency of the United States of America as at the time of payment shall constitute legal tender for the payment of public
and private debts, at the principal corporate trust office of the Trustee, or at the corporate trust office of any paying agent appointed. 
 Bonds of the Medium-Term Notes Series F shall be transferable and exchangeable, but only as provided in the Indenture and the Note Indenture, upon surrender thereof for cancellation by the registered
owner in person or by attorney duly authorized in writing at either of said offices. The Company hereby waives any right to make a charge for any transfer or exchange of Bonds of the Medium-Term Notes Series F, but the Company may require payment of
a sum sufficient to cover any tax or any other governmental charge that may be imposed in relation thereto. 
 ARTICLE II.

 REDEMPTION OF BONDS OF MEDIUM-TERM
NOTES SERIES F. 
 Section 2.01. Redemption—Redemption Price. Bonds of the Medium-Term
Notes Series F shall be subject to redemption prior to maturity under the conditions, and upon payment of the amounts as may be specified in the following conditions: 
 (a) at any time in whole or in part at the option of the Company upon receipt by the Trustee of written certification of the
Company and of the Note Trustee that the principal amount of the Series F Notes then outstanding under the Note Indenture is not in excess of such principal amount of the Bonds of the Medium-Term Notes Series F as shall remain pledged to the Note
Trustee after giving effect to such redemption; or (b) at any time by the application of any proceeds of released property or other money held by the Trustee and which, pursuant to Section 4C of Article Eight of the Indenture, as amended
and supplemented, are applied to the redemption of Bonds of the Medium-Term Notes Series F, upon payment of 100% of the principal amount thereof, together with interest accrued to the redemption date, provided that any such payment shall be subject
to receipt by the Company of certain credits against such obligations as set forth in Section 3.01 hereof. 
  

 7 








 SECTION 2.02. Redemptions Pursuant to Section 4C of Article Eight
of the Indenture. If, pursuant to Section 4C of Article Eight of the Indenture, as amended and supplemented, any proceeds of released property or other money then held by the Trustee shall be applied to the redemption of the Bonds of the
Medium-Term Notes Series F, the Trustee shall give at least 45 days prior written notice of such redemption to the Note Trustee whereupon on the date fixed for redemption such principal amount thereof as is equal to such proceeds shall be redeemed;
provided that no such redemption shall be made unless the Trustee shall be in receipt of a written certification of the Company and the Note Trustee that a like principal amount of Series F Notes shall have been theretofore redeemed in accordance
with the provisions of the Note Indenture. For purposes of determining which of the Company’s First and Refunding Mortgage Bonds are subject to such mandatory redemption, the Mortgage Trustee shall consider the 10% stated annual interest rate
of the Bonds of the Medium-Term Notes Series F, not the weighted average interest rate of outstanding Series F Notes. Bonds of said series so redeemed shall be cancelled. 
 SECTION 2.03. Interest on Called Bonds to Cease. Each Bond of the Medium-Term Notes Series F or portion thereof called for redemption under Section 2.02 hereof shall be due and
payable at the office of the Note Trustee, as paying agent hereunder, at its redemption price and on the specified redemption date, anything herein or in such Bond to the contrary notwithstanding. From and after the date when each Bond of the
Medium-Term Notes Series F or portion thereof shall be due and payable as aforesaid (unless upon said date the full amount due thereon shall not be held by the Note Trustee, as paying agent hereunder, and be immediately available for payment), all
further interest shall cease to accrue on such bond or on such portion thereof, as the case may be. 
 SECTION 2.04. Bonds Called in Part. If only a portion of any Bond of the Medium-Term Notes Series F shall be called for redemption pursuant to Section 2.02 hereof, upon payment of the portion so called for
redemption, the Note Trustee shall make an appropriate notation upon the Bond of the principal amount so redeemed. 
 SECTION 2.05. Provisions of Indenture Not Applicable. The provisions of Article Four of the Indenture, as amended and supplemented, shall not apply to the procedure for the exercise of any right of redemption reserved by
the Company, or to any mandatory redemption provided, in this Article in respect of the Bonds of the Medium-Term Notes Series F. There shall be no sinking fund for the Bonds of the Medium-Term Notes Series F. 
 ARTICLE III. 
 CREDITS WITH RESPECT TO BONDS OF THE MEDIUM-TERM NOTES SERIES F.

 Section 3.01. Credits. In addition to any other credit, payment or satisfaction to which the Company is entitled with
respect to the Bonds of the Medium-Term Notes Series F, the Company shall be entitled to credits against amounts otherwise payable in respect of the Bonds of the Medium-Term Notes Series F in an amount corresponding to (i) the principal amount
of any of the Company’s Series F Notes issued under the Note Indenture surrendered to the Note Trustee by the Company, or purchased by the Note Trustee, for cancellation, (ii) the amount of money held by the Note Trustee and available and
designated for the payment of principal or redemption price (exclusive of any premium) of, and/or interest on, the Series F Notes, regardless of the source of payment to the Note Trustee of such moneys and (iii) the amount by which principal of
and interest due on the Bonds of the Medium-Term Notes Series F exceeds principal of and interest due on the Series F Notes. The Note Trustee shall make notation on such Bonds authorized hereby of any such credit. 
 SECTION 3.02. Certificate of the Company. A certificate of the Company signed by the President or any Vice President,
and attested to by the Secretary or any Assistant Secretary, and consented to by the Note Trustee, stating that the Company is entitled to a credit under Section 3.01 hereof or that Bonds of the Medium-Term Notes Series F have been cancelled,
and setting forth the basis therefor in reasonable detail, shall be conclusive evidence of such entitlement, and the Trustee shall accept such certificate as such evidence without further investigation or verification of the matters stated therein.

  

 8 








 ARTICLE IV. 
 MISCELLANEOUS. 
 Section 4.01. Authentication of Bonds of
Medium-Term Notes Series F. None of the Bonds of the Medium-Term Notes Series F, the issue of which is provided for by this supplemental indenture, shall be authenticated by or on behalf of the Trustee except in accordance with the provisions of the
Indenture, as amended and supplemented, and this supplemental indenture, and upon compliance with the conditions in that behalf therein contained. 
 SECTION 4.02. Additional Restrictions on Authentication of Additional Bonds Under Indenture. The Company covenants that from and after the date of execution of this supplemental
indenture no additional bonds (as defined in Section 1 of Article Two of the Indenture) shall be authenticated and delivered by the Trustee under Subdivision A of Section 4 of said Article Two on account of additions or improvements to the
mortgaged property; 
 (1) unless the net earnings of the Company for the period required by Subdivision C of
Section 6 of said Article Two shall have been at least twice the fixed charges (in lieu of 1-3/4 times such fixed charges, as required by said Subdivision C); and for the purpose of this condition (a) such fixed charges shall in each case
include interest on the bonds applied for, notwithstanding the parenthetical provision contained in clause (4) of said Subdivision C, and (b) in computing such net earnings there shall be included in expenses of operation (under paragraph
(c) of said Subdivision C) all charges against earnings for depreciation, renewals or replacements, and all certificates with respect to net earnings delivered to the Trustee in connection with any authentication of additional bonds under said
Article Two shall so state; and (2) except to the extent of 60% (in lieu of 75% as permitted by Subdivision A of Section 7 of said Article Two) of the cost or fair value to the Company of the additions or improvements forming the basis for
such authentication of additional bonds. 
 SECTION 4.03. Restriction on Dividends. The Company will not
declare or pay any dividend on any shares of its common stock (other than dividends payable in shares of its common stock) or make any other distribution on any such shares, or purchase or otherwise acquire any such shares (except shares acquired
without cost to the Company) whenever such action would reduce the earned surplus of the Company to an amount less than $10,000,000 or such lesser amount as may remain after deducting from said $10,000,000 all amounts appearing in the books of
account of the Company on December 31, 1948, which shall thereafter, pursuant to any order or rule of any regulatory body entered after said date, be required to be removed, in whole or in part, from the books of account of the Company by
charges to earned surplus. 
 SECTION 4.04. Use of Facsimile Seal and Signatures. The seal of the Company
and any or all signatures of the officers of the Company upon any of the Bonds of the Medium-Term Notes Series F may be facsimiles. 
 SECTION 4.05. Time for Making of Payment. All payments of principal or redemption price of, and interest on, the Bonds of the Medium-Term Notes Series F shall be made either prior to the due date thereof or on the due
date thereof in immediately available funds. In any case where the date of any such payment shall be a Saturday or Sunday or a legal holiday or a day on which banking institutions in the city of payment are authorized by law to close, then such
payment need not be made on such date but may be made on the next succeeding business day with the same force and effect as if made on the due date, and no interest on such payment shall accrue for the period after such date. 
 SECTION 4.06. Effective Period of Supplemental Indenture. The preceding provisions of Articles I, II and III of this
supplemental indenture shall remain in effect only so long as any of the Bonds of the Medium-Term Notes Series F shall remain outstanding. 
 SECTION 4.07. Effect of Approval of Board of Public Utilities of the State of New Jersey. The approval of the Board of Public Utilities of the State of New Jersey of the execution and
delivery of these presents and of the issue of any Bond of the Medium-Term Notes Series F shall not be construed as approval of said Board of any other act, matter or thing which requires approval of said Board under the laws of the State of New
Jersey. 
  

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 SECTION 4.08. Execution in Counterparts. For the purpose of facilitating
the recording hereof, this supplemental indenture has been executed in several counterparts, each of which shall be and shall be taken to be an original, and all collectively but one instrument. 
  

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 IN WITNESS WHEREOF, Public Service Electric and
Gas Company, party hereto of the first part, after due corporate and other proceedings, has caused this supplemental indenture to be signed and acknowledged or proved by its President or one of its Vice Presidents and its corporate seal hereunto to
be affixed and to be attested by the signature of its Secretary or an Assistant Secretary; and US Bank National Association, as Trustee, party hereto of the second part, has caused this supplemental indenture to be signed and acknowledged or proved
by its President or one of its Vice Presidents, and its corporate seal to be hereunto affixed and to be attested by the signature of its Secretary, Assistant Secretary; Vice President, or an Assistant Vice President. Executed and delivered this 7th
day of November 2008. 
 Attest: 
  

			
	PUBLIC SERVICE ELECTRIC AND GAS COMPANY
		
	By	 	 
		 	 M. A. Plawner
 Vice
President



  

	
	Attest:
	
	  
	 S.L. Guibord
 Assistant
Secretary


  

			
	US BANK NATIONAL ASSOCIATION
		
	By	 	 
		 	 N. Barnes
 Vice President




  

	
	Attest:
	
	  
	 P. O’Brien 
 Vice President


  

 11 









			
	 STATE OF NEW JERSEY
	  	      )
		  	SS:)
	 COUNTY OF ESSEX
	  	      )

 Be
it Remembered, that on this 6th day of November, 2008, before me, the subscriber, a Notary Public of the State of New Jersey, personally appeared M.A. Plawner, who, I am satisfied, is a Vice President of Public Service Electric and Gas Company,
one of the corporations named in and which executed the foregoing instrument, and is the person who signed the said instrument as such officer, for and on behalf of such corporation, and I having first made known to him the contents thereof, he did
acknowledge that he signed the said instrument as such officer, that the said instrument was made by such corporation and sealed with its corporate seal, that the said instrument is the voluntary act and deed of such corporation, made by virtue of
authority from its Board of Directors, and that said corporation the mortgagor, has received a true copy of said instrument. 

	
	
	  
	 Susan M. Costello
 Notary
Public of New Jersey
 My Commission Expires March 26, 2012



  

			
	 STATE OF NEW JERSEY
	  	      )
		  	SS:)
	 COUNTY OF ESSEX
	  	      )

 Be
it Remembered, that on this 7th day of November 2008, before me, the subscriber, a Notary Public of the State of New Jersey, personally appeared Norman Barnes, who, I am satisfied, is a Vice President of US Bank National Association, one of the
corporations named in and which executed the foregoing instrument, and is the person who signed the said instrument as such officer, for and on behalf of such corporation, and I having first made known to him the contents thereof, he did acknowledge
that he signed the said instrument as such officer, that the said instrument was made by such corporation and sealed with its corporate seal, and that the said instrument is the voluntary act and deed of such corporation, made by virtue of authority
from its Board of Directors. 

	
	
	  
	 Melody A. Nedrick
 Notary
Public of New Jersey
 My Commission Expires March 3, 2010


  

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 CERTIFICATE OF RESIDENCE 
 US Bank National Association, Mortgagee and Trustee within named, hereby certifies that its precise residence is 21 South Street,
Morristown, New Jersey 07960. 
  

			
	US BANK NATIONAL ASSOCIATION
		
	By	 	 
		 	 N. Barnes
 Vice President




  

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