EXHIBIT 12.2

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Plus Preferred Security Dividend Requirements

|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|------------------------------------------------------------------------------ |  | --------------------------- | ---- | --------------------- | - | ---- | - | ---- | ---- | ---- | - | ---- | - | ---- | ---- | - | - | ---- | - | - | ---- | -
|                                                                               |  | For the
  Six Months        |      | For the
  Years Ended |  
|                                                                               |  | Ended
  June 30,            |      | December
  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                                                                  |  |                             | 168  |                       |   | 171  |   |      | 353  |      |   | 349  |   |      | 369  |   |   | 397  |   |   | 415  |  
|Preferred Securities Pre
  Tax                                                 |  |                             | (3   | )                     |   | (3   | ) |      | (7   | )    |   | (7   | ) |      | (7   | ) |   | (7   | ) |   | (7   | )
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|Earnings                                                                       |  | $                           | 500  |                       | $ | 371  |   | $    | 794  |      | $ | 925  |   | $    | 954  |   | $ | 766  |   | $ | 728  |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|Fixed Charges as Defined in
  Regulation S-K (B)                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|Interest Expense                                                               |  | $                           | 165  |                       | $ | 168  |   | $    | 346  |      | $ | 342  |   | $    | 362  |   | $ | 390  |   | $ | 406  |  
|Interest Factor in Rentals                                                     |  |                             |     |                       |   |     |   |      |     |      |   |     |   |      |     |   |   |     |   |   | 2    |  
|Preferred Securities
  Dividends                                               |  |                             | 2    |                       |   | 2    |   |      | 4    |      |   | 4    |   |      | 4    |   |   | 4    |   |   | 4    |  
|Adjustment to state
  Preferred Securities Dividends on a pre-income tax basis |  |                             | 1    |                       |   | 1    |   |      | 3    |      |   | 3    |   |      | 3    |   |   | 3    |   |   | 3    |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|Total Fixed Charges                                                            |  | $                           | 168  |                       | $ | 171  |   | $    | 353  |      | $ | 349  |   | $    | 369  |   | $ | 397  |   | $ | 415  |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  
|Ratio of Earnings to Fixed
  Charges                                           |  |                             | 2.98 |                       |   | 2.17 |   |      | 2.25 |      |   | 2.65 |   |      | 2.59 |   |   | 1.93 |   |   | 1.75 |  
|                                                                               |  |                             |      |                       |   |      |   |      |      |      |   |      |   |      |      |   |   |      |   |   |      |  

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