|                                                  
|--------------------------------------------------
|Exhibit
  12.1                                    
|                                                  
|PUBLIC SERVICE ELECTRIC AND GAS COMPANY           
|COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|--------------------------------------------- |  | ---------------------------------- | ---- | --------------------------------- | - | ---- |  | ---- | ---- | ---- | - | ---- |  | ---- | ---- |  | - | ---- |  | - | ---- | 
|                                              |  | For the
  Six MonthsEnded June 30, |      | For the
  Years EndedDecember 31, |  
|                                              |  |                                    |      |                                   |  
|                                              |  | 2007                               |      | 2006                              |   | 2006 |  | 2005 |      | 2004 |   | 2003 |  | 2002 |     
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |     
|                                              |  | (Millions,
  except ratios)        |     
|Earnings as Defined in Regulation S-K (A):    |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Pre-tax Income from Continuing Operations     |  | $                                  | 335  |                                   | $ | 203  |  | $    | 448  |      | $ | 583  |  | $    | 592  |  | $ | 376  |  | $ | 320  | 
|Fixed Charges                                 |  |                                    | 165  |                                   |   | 168  |  |      | 346  |      |   | 342  |  |      | 362  |  |   | 390  |  |   | 408  | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Earnings                                      |  | $                                  | 500  |                                   | $ | 371  |  | $    | 794  |      | $ | 925  |  | $    | 954  |  | $ | 766  |  | $ | 728  | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Fixed Charges as Defined in RegulationS-K (B) |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Interest Expense                              |  | $                                  | 165  |                                   | $ | 168  |  | $    | 346  |      | $ | 342  |  | $    | 362  |  | $ | 390  |  | $ | 406  | 
|Interest Factor in Rentals                    |  |                                    |     |                                   |   |     |  |      |     |      |   |     |  |      |     |  |   |     |  |   | 2    | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Total Fixed Charges                           |  | $                                  | 165  |                                   | $ | 168  |  | $    | 346  |      | $ | 342  |  | $    | 362  |  | $ | 390  |  | $ | 408  | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 
|Ratio of Earnings to Fixed Charges            |  |                                    | 3.03 |                                   |   | 2.21 |  |      | 2.29 |      |   | 2.70 |  |      | 2.64 |  |   | 1.96 |  |   | 1.78 | 
|                                              |  |                                    |      |                                   |   |      |  |      |      |      |   |      |  |      |      |  |   |      |  |   |      | 

|    |                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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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