<PAGE>


                                                                    EXHIBIT 12.2

                     PUBLIC SERVICE ELECTRIC AND GAS COMPANY
               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                 PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS

<TABLE>
<CAPTION>
                                                 For the Quarters              For the Years Ended
                                                  Ended March 31,                  December 31,
                                                 ----------------------------------------------------------
                                                    2004    2003     2003    2002    2001    2000     1999
                                                 ----------------------------------------------------------
                                                                    (Millions, except ratios)
<S>                                                <C>     <C>      <C>     <C>     <C>     <C>      <C>
Earnings as Defined in Regulation S-K (A):

Pre-tax Income from Continuing Operations          $ 219   $ 157    $ 376   $ 320   $ 324   $  994   $1,163

Fixed Charges                                         98     100      397     415     469      462      457
Preferred Securities Dividends, pre-tax               (2)     (2)      (7)     (7)     (8)     (15)     (15)
                                                 ----------------------------------------------------------
Total Earnings                                     $ 315   $ 255    $ 766   $ 728   $ 785   $1,441   $1,605
                                                 ==========================================================
Fixed Charges as Defined in Regulation S-K (B)

Interest Expense                                   $  96   $  97    $ 390   $ 406   $ 458   $  444   $  440
Interest Factor in Rentals                            --       1       --       2       3        3        2
Preferred Securities Dividends                         1       1        4       4       5        9        9
Adjustment to state Preferred Securities
   Dividends on a pre-income tax basis                 1       1        3       3       3        6        6
                                                 ----------------------------------------------------------
Total Fixed Charges                                $  98   $ 100    $ 397   $ 415   $ 469   $  462   $  457
                                                 ==========================================================
Ratio of Earnings to Fixed Charges                  3.21    2.55     1.93    1.75    1.67     3.12     3.51
                                                 ==========================================================
</TABLE>

(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.