EXHIBIT
12.2

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

|                                                                               |  | For the Nine Months
  Ended September 30, |      | For the Years Ended
  December 31, |  
|------------------------------------------------------------------------------ |  | ----------------------------------------- | ---- | ---------------------------------- | -
|                                                                               |  |                                           |      |                                    |  
|                                                                               |  | 2003                                      |      | 2002                               |  
|                                                                               |  |                                           |      |                                    |  
|                                                                               |  | (Millions,
  except ratios)               |     
|Earnings as Defined in Regulation S-K (A):                                     |  |                                           |      |                                    |  
|                                                                               |  |                                           |      |                                    |  
|Pre-tax Income from Continuing Operations                                      |  | $                                         | 278  |                                    | $
|Fixed Charges                                                                  |  |                                           | 296  |                                    |  
|AFUDC                                                                          |  |                                           |     |                                    |  
|Preferred Securities Dividends, pre-tax                                        |  |                                           | (5   | )                                  |  
|                                                                               |  |                                           |      |                                    |  
|Earnings                                                                       |  | $                                         | 569  |                                    | $
|                                                                               |  |                                           |      |                                    |  
|                                                                               |  |                                           |      |                                    |  
|Fixed Charges as Defined in Regulation S-K
  (B)                               |  |                                           |      |                                    |  
|                                                                               |  |                                           |      |                                    |  
|Interest Expense                                                               |  | $                                         | 291  |                                    | $
|Interest Factor in Rentals                                                     |  |                                           |     |                                    |  
|Adjustment to state Preferred Securities
  Dividends on a pre-income tax basis |  |                                           | 2    |                                    |  
|                                                                               |  |                                           |      |                                    |  
|Total Fixed Charges                                                            |  | $                                         | 296  |                                    | $
|                                                                               |  |                                           |      |                                    |  
|                                                                               |  |                                           |      |                                    |  
|Ratio of Earnings to Fixed Charges                                             |  |                                           | 1.92 |                                    |  
|                                                                               |  |                                           |      |                                    |  

(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.