**EXHIBIT 12.1**

 

**PUBLIC SERVICE ELECTRIC AND GAS COMPANY**

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

 

 

|                                                    |   | **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                                  |   |                                                       | 254    |                                             |   | 256 |   |   | 342 |   |   | 362 |   |   | 390 |   |   | 408 |   |   | 461 |   |
| 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 |   |
| Total          Fixed Charges                            |   | $                                                          | 254    |                                             | $      | 256 |   | $ | 342 |   | $ | 362 |   | $ | 390 |   | $ | 408 |   | $ | 461 |   |
|                                                    |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio          of Earnings to Fixed Charges             |   |                                                       | 2.42   |                                             |   | 2.85 |   |   | 2.70 |   |   | 2.64 |   |   | 1.96 |   |   | 1.78 |   |   | 1.70 |   |
|                                                    |   |                                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

 

| (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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