**EXHIBIT 12.2**

 

**PUBLIC SERVICE ELECTRIC AND GAS COMPANY**

**COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES**

**PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS**

 

 

|                                                                                  |   | **For          the Nine****Months Ended****September 30,** |   | **For          the Years Ended****December 31,** |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                  |   | **2006**                                                   |   | **2005**                                         |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
|                                                                                  |   | **(Millions,          except ratios)**                     |   |
| Earnings          as Defined in Regulation S-K (A):                                   |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax          Income from Continuing Operations                                    |   | $                                                          | 360    |                                             | $      | 473 |   | $ | 583 |   | $ | 592 |   | $ | 376 |   | $ | 320 |   | $ | 324 |   |
| Fixed          Charges                                                                |   |                                                       | 259    |                                             |   | 261 |   |   | 349 |   |   | 369 |   |   | 397 |   |   | 415 |   |   | 469 |   |
| Preferred          Securities Pre-tax                                                 |   |                                                       | (5     | )                                                |   | (5 | ) |   | (7 | ) |   | (7 | ) |   | (7 | ) |   | (7 | ) |   | (8 | ) |
| Earnings                                                                              |   | $                                                          | 614    |                                             | $      | 729 |   | $ | 925 |   | $ | 954 |   | $ | 766 |   | $ | 728 |   | $ | 785 |   |
|                                                                                  |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed          Charges as Defined in Regulation S-K (B)                               |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest          Expense                                                             |   | $                                                          | 254    |                                             | $      | 256 |   | $ | 342 |   | $ | 362 |   | $ | 390 |   | $ | 406 |   | $ | 458 |   |
| Interest          Factor in Rentals                                                   |   |                                                       | — |                                             |   | — |   |   | — |   |   | — |   |   | — |   |   | 2 |   |   | 3 |   |
| Preferred          Securities Dividends                                               |   |                                                       | 3      |                                             |   | 3 |   |   | 4 |   |   | 4 |   |   | 4 |   |   | 4 |   |   | 5 |   |
| Adjustment          to state Preferred Securities Dividends on a pre-income tax basis |   |                                                       | 2      |                                             |   | 2 |   |   | 3 |   |   | 3 |   |   | 3 |   |   | 3 |   |   | 3 |   |
| Total          Fixed Charges                                                          |   | $                                                          | 259    |                                             | $      | 261 |   | $ | 349 |   | $ | 369 |   | $ | 397 |   | $ | 415 |   | $ | 469 |   |
|                                                                                  |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio          of Earnings to Fixed Charges                                           |   |                                                       | 2.37   |                                             |   | 2.79 |   |   | 2.65 |   |   | 2.59 |   |   | 1.93 |   |   | 1.75 |   |   | 1.67 |   |
|                                                                                  |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

 

| (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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