**EXHIBIT 12.2**

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

 

|                                                                         |   | **For the Quarters****Ended March 31,** |   | **For the Years Ended****December 31,** |   |
|------------------------------------------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|--------|
|                                                                         |   |                                         |   |                                         |   |
|                                                                         |   | **2003**                                |   | **2002**                                |   | **2002** |   | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
|                                                                         |   |                                         |   |                                         |   |  |   |  |   |  |   |  |   |  |   |
| Earnings as Defined in Regulation S-K (A):                                   |   |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax Income from Continuing Operations                                    |   | $                                       | 157    |                                    | $      | 110 |   | $ | 320 |   | $ | 324 |   | $ | 994 |   | $ | 1,163 |   | $ | 1,006 |   |
| Fixed Charges                                                                |   |                                    | 99     |                                    |   | 105 |   |   | 429 |   |   | 487 |   |   | 462 |   |   | 457 |   |   | 451 |   |
| AFUDC                                                                        |   |                                    | — |                                    |   | — |   |   | (1 | ) |   | (2 | ) |   | (1 | ) |   | (7 | ) |   | (44 | ) |
| Preferred Securities Dividends Requirements of Subsidiaries                  |   |                                    | (3     | )                                       |   | (3 | ) |   | (13 | ) |   | (24 | ) |   | (46 | ) |   | (46 | ) |   | (12 | ) |
| Preferred Securities Dividends, pre-tax                                      |   |                                    | (2     | )                                       |   | (2 | ) |   | (7 | ) |   | (8 | ) |   | (15 | ) |   | (15 | ) |   | (15 | ) |
|                                                                         |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Earnings                                                                     |   | $                                       | 251    |                                    | $      | 210 |   | $ | 728 |   | $ | 777 |   | $ | 1,394 |   | $ | 1,552 |   | $ | 1,386 |   |
|                                                                         |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Fixed Charges as Defined in Regulation S-K (B)                               |   |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                                             |   | $                                       | 94     |                                    | $      | 100 |   | $ | 407 |   | $ | 452 |   | $ | 398 |   | $ | 394 |   | $ | 390 |   |
| Interest Factor in Rentals                                                   |   |                                    | — |                                    |   | — |   |   | 2 |   |   | 3 |   |   | 3 |   |   | 2 |   |   | 2 |   |
| Preferred Securities Dividends Requirements of Subsidiaries                  |   |                                    | 3      |                                    |   | 3 |   |   | 13 |   |   | 24 |   |   | 46 |   |   | 46 |   |   | 44 |   |
| Preferred Securities Dividends                                               |   |                                    | 1      |                                    |   | 1 |   |   | 4 |   |   | 5 |   |   | 9 |   |   | 9 |   |   | 9 |   |
| Adjustment to state Preferred Securities Dividends on a pre-income tax basis |   |                                    | 1      |                                    |   | 1 |   |   | 3 |   |   | 3 |   |   | 6 |   |   | 6 |   |   | 6 |   |
|                                                                         |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total Fixed Charges                                                          |   | $                                       | 99     |                                    | $      | 105 |   | $ | 429 |   | $ | 487 |   | $ | 462 |   | $ | 457 |   | $ | 451 |   |
|                                                                         |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Ratio of Earnings to Fixed Charges                                           |   |                                    | 2.54   |                                    |   | 2.00 |   |   | 1.70 |   |   | 1.60 |   |   | 3.02 |   |   | 3.40 |   |   | 3.07 |   |
|                                                                         |   |                                         |        |                                    |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |