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                                                                  EXHIBIT 12 (A)

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                     PUBLIC SERVICE ELECTRIC AND GAS COMPANY
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               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
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                                                                                                                12 Months
                                                                                                                  Ended
                                                               YEARS ENDED DECEMBER 31,                         Sept. 30,
                                          -----------  ------------  ------------   ------------  ------------  -----------
                                             1993         1994          1995           1996          1997          1998
                                          -----------  ------------  ------------   ------------  ------------  -----------
                                                              (Millions of Dollars, where applicable)
Earnings as Defined in Regulation S-K (A):

<S>                                             <C>           <C>           <C>            <C>           <C>          <C> 
Net Income                                      $615          $659          $617           $535          $528         $628
Income Taxes (B)                                 307           302           326            268           286          435
Fixed Charges                                    401           408           419            438           450          438
                                          -----------  ------------  ------------   ------------  ------------  -----------
Earnings                                      $1,323        $1,369        $1,362         $1,241        $1,264       $1,501
                                          ===========  ============  ============   ============  ============  ===========

Fixed Charges as Defined in Regulation S-K (C):

Total Interest Expense                          $390          $396          $407           $399          $395         $383
Interest Factor in Rentals                        11            12            12             11            11           11
Subsidiaries' Preferred Securities
    Dividend Requirements                        --            --            --              28            44           44
                                          -----------  ------------  ------------   ------------  ------------  -----------
Total Fixed Charges                             $401          $408          $419           $438          $450         $438
                                          ===========  ============  ============   ============  ============  ===========

Ratio of Earnings to Fixed Charges              3.30          3.35          3.25           2.83          2.81         3.42
                                          ===========  ============  ============   ============  ============  ===========

(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 and
     (b) the actual  amount of any  preferred  stock  dividend  requirements  of
     majority-owned  subsidiaries  which were  included  in such  fixed  charges
     amount but not deducted in the determination of pretax income.

(B) Includes State income taxes and Federal income taxes for other income.

(C)  Fixed Charges represent (a) interest, whether expensed or capitalized,  (b)
     amortization  of debt  discount,  premium and  expense,  (c) an estimate of
     interest  implicit  in  rentals,  and  (d)  Preferred  Securities  Dividend
     Requirements of subsidiaries.
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