EXHIBIT 12 (A)

<TABLE>
<CAPTION>
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                                           PUBLIC SERVICE ELECTRIC AND GAS COMPANY
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                                     COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

                                                                                                                   12 Months
                                                                                                                     Ended
                                                                YEARS ENDED DECEMBER 31,                           September
                                                                                                                      30,
                                           -----------  ------------  -------------  ------------  ------------   ------------
                                               1994          1995           1996         1997           1998           1999
                                           -----------  ------------  -------------  ------------  ------------   ------------
<S>                                              <C>           <C>            <C>           <C>           <C>            <C>
Earnings as Defined in Regulation
  S-K (A):
Net Income  (B)                                  $659          $617           $535          $528          $604           $652
Income Taxes (C)                                  302           326            268           286           406            443
Fixed Charges                                     408           419            438           450           446            450
                                           -----------  ------------  -------------  ------------  ------------  -------------
Earnings                                       $1,369        $1,362         $1,241        $1,264        $1,456         $1,545
                                           ===========  ============  =============  ============  ============  =============

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

Total Interest Expense                           $396          $407           $399          $395          $390           $393
Interest Factor in Rentals                         12            12             11            11            11             10
Subsidiaries' Preferred Securities
    Dividend Requirements                          --            --             28            44            45             47
                                           -----------  ------------  -------------  ------------  ------------  -------------
Total Fixed Charges                              $408          $419           $438          $450          $446           $450
                                           ===========  ============  =============  ============  ============  =============

Ratio of Earnings to Fixed Charges               3.35          3.25           2.83          2.81          3.27           3.43
                                           ===========  ============  =============  ============  ============  =============

<FN>
(A)  The term  "earnings"  shall be defined as pre-tax  income  from  continuing
     operations.  Add to pre-tax 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 pre-tax income.

(B)  Excludes extraordinary item.

(C)  Includes  State income taxes and Federal  income taxes for other income and
     excludes taxes applicable to extraordinary item.

(D)  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.
</FN>
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