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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

                  (Mark One)

              |X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                   For the fiscal year ended December 31, 2002

                                       OR

              |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
            For the transition period from ___________ to ___________

Commission             Registrant, State of Incorporation,     I.R.S. Employer
File Number               Address, and Telephone Number       Identification No.
-----------          --------------------------------------   ------------------
 333-83635                PSE&G Transition Funding LLC           22-3672053
                     (A Delaware limited liability company)
                               80 Park Plaza - T4D
                                  P.O. Box 1171
                          Newark, New Jersey 07101-1171
                                  973 297-2227
                               http://www.pseg.com

        Securities registered pursuant to Section 12 (b) of the Act: NONE

        Securities registered pursuant to Section 12 (g) of the Act: NONE

               Documents incorporated by reference: Not Applicable

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter  period that the  registrants  were
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of regulation  S-K is not contained  herein,  and will not be contained,  to the
best  of  the  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. |X|

Registrant  is a  wholly-owned  subsidiary  of Public  Service  Electric and Gas
Company.  Registrant meets the conditions set forth in General Instruction I (1)
(a) and (b) of Form 10-K and is filing this Annual  Report on Form 10-K with the
reduced disclosure format authorized by General Instruction I.

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<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I

Item 1.   Business.......................................................      1
Item 2.   Properties.....................................................      2
Item 3.   Legal Proceedings..............................................      2
Item 4.   Submission of Matters to a Vote of Security Holders............      2

PART II

Item 5.   Market for Registrant's Common Equity and
            Related Stockholder Matters..................................      3
Item 6.   Selected Financial Data........................................      3
Item 7.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations..........................      3
          Forward Looking Statements.....................................      5
Item 7A.  Qualitative and Quantitative Disclosures About
            Market Risk..................................................      5
Item 8.   Financial Statements and Supplementary Data....................      6
          Notes to Financial Statements..................................     10
          Independent Auditors' Report...................................     15
Item 9.   Changes in and Disagreements With Accountants on
            Accounting and Financial Disclosure..........................     16

PART III

Item 10.  Directors and Executive Officers of the Registrants............     16
Item 11.  Executive Compensation.........................................     16
Item 12.  Security Ownership of Certain Beneficial Owners
            and Management...............................................     16
Item 13.  Certain Relationships and Related Transactions.................     16
Item 14.  Disclosure Controls and Procedures.............................     16

PART IV

Item 15.  Exhibits, Financial Statement Schedules and Reports
            on Form 8-K..................................................     18
          Signatures.....................................................     19


                                       i

<PAGE>

                                     PART I

ITEM 1. BUSINESS

      Unless the context  otherwise  indicates,  all  references to  "Transition
Funding,"  "we," "us" or "our"  herein  mean  PSE&G  Transition  Funding  LLC, a
Delaware limited liability company located at 80 Park Plaza,  Newark, New Jersey
07102.

      We were  formed  under the laws of the State of  Delaware on July 21, 1999
and  operate  pursuant  to a limited  liability  company  agreement  with Public
Service  Electric  and Gas  Company  (PSE&G)  as our  sole  member.  PSE&G is an
operating  electric and gas utility and is a  wholly-owned  subsidiary of Public
Service  Enterprise Group  Incorporated  (PSEG).  We were organized for the sole
purpose of purchasing and owning  bondable  transition  property (BTP) of PSE&G,
issuing  transition  bonds  (Bonds),  pledging  our  interest  in BTP and  other
collateral to a debt/security  trustee (Trustee) to collateralize the Bonds, and
performing  activities that are necessary,  suitable or convenient to accomplish
these purposes.

      Following  the  enactment of the New Jersey  Electric  Discount and Energy
Competition  Act  (Energy  Competition  Act),  the New  Jersey  Board of  Public
Utilities  (BPU) rendered a Final Order (Final Order) in August 1999 relating to
PSE&G's rate unbundling, stranded costs and restructuring proceedings providing,
among other things, for PSE&G to recover up to $2.94 billion (net of tax) of its
generation-related  stranded costs including the  securitization of $2.4 billion
(plus an estimated $125 million of associated  transaction  costs). The stranded
costs represent  various  generation-related  investments and other  obligations
that  were  anticipated  to be  unrecoverable  through  market-based  rates in a
competitive electricity generation retail market.

      Following  the  issuance  of the Final  Order,  the BPU issued the Finance
Order approving  PSE&G's  petition  relating to the  securitization  transaction
which  authorized,  among  other  things,  the  imposition  of a  non-bypassable
transition bond charge (TBC) on PSE&G's customers;  the sale of PSE&G's property
right in such charge to a  bankruptcy-remote  financing entity; the issuance and
sale  of  $2.525  billion  of  transition   bonds  (Bonds)  by  such  entity  as
consideration  for such property  right,  including an estimated $125 million of
transaction  costs; and the application by PSE&G of the transition bond proceeds
to retire outstanding debt and/or equity.

      On January 31, 2001, we issued $2.525 billion of transition bonds in eight
classes with stated maturities  ranging from 1 year to 15 years, of which $2.351
billion in seven classes  remain  outstanding.  The net proceeds of the issuance
were utilized to acquire PSE&G's property right in the TBC. The transition bonds
are  collateralized by the BTP created under the Energy  Competition Act and the
related  Finance Order.  The BTP represents  the  irrevocable  right to recover,
through a TBC billed by PSE&G to its retail  electric  customers  within PSE&G's
service territory, an amount sufficient to pay:

      o     the interest, fees, expenses, costs, charges, credit enhancement and
            premiums, if any, associated with the transition bonds, and

      o     the principal amount of the transition bonds.

      Approximately  $230 million of issuance  costs were incurred in connection
with the securitization transaction, including costs of a hedging arrangement as
permitted by the Finance Order.  The $105 million in costs in excess of the $125
million of estimated  transaction  costs included in the BTP, as provided for in
the Finance  Order,  were  capitalized  and will be recovered on a  subordinated
basis by PSE&G  through  the TBC.  The  initial  TBC rate  became  effective  on
February 7, 2001, in accordance with the Final Order.

      As the TBC is a usage-based charge based on access to PSE&G's transmission
and distribution  system,  the customers will be assessed  regardless of whether
the customers purchase  electricity from PSE&G or a third party supplier.  Also,
if on-site generation  facilities that are connected to PSE&G's transmission and
distribution  system produce power that is delivered to off-site retail electric
customers in PSE&G's  service  territory,  the transition bond charge applies to
the sale or delivery of that power.


                                       1
<PAGE>

      Payments are made to the bondholders on a quarterly  basis.  Principal and
interest on the transition bonds and the excess issuance costs will be paid from
the following sources:

      o     TBC collections remitted by the servicer (PSE&G) to the issuer (us);

      o     amounts from any third party credit enhancement;

      o     investment  earnings on amounts held in accounts  established  under
            the indenture agreement;

      o     amounts   payable  to  the  issuer  under  any  interest  rate  swap
            agreements;

      o     other amounts available in the trust accounts held by the trustee.

      To the  extent  that TBC  collections  are  deficient  or in excess of the
principal and interest on the transition bonds, the TBC rate will be adjusted in
the following year.

      We have no employees.  Under the servicing agreement entered into by PSE&G
and us  concurrently  with the issuance of the first Series of Bonds,  PSE&G, as
servicer,  is  required  to  collect  the TBC on  behalf of us. We pay an annual
servicing  fee  to  PSE&G  equal  to  0.05%  of the  initial  balance  of  Bonds
outstanding.  The servicing fee is recovered through the TBC. Interest earned on
funds  in the  Capital  Subaccount  results  in Net  Income  for us and  will be
periodically dividended to PSE&G.

ITEM 2. PROPERTIES

      We do not own any real property. Our primary asset is the BTP described in
Item 1. Business.

ITEM 3. LEGAL PROCEEDINGS

      None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
        HOLDERS

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.


                                       2
<PAGE>

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND
        RELATED STOCKHOLDER MATTERS

      All of our outstanding equity interests are owned by PSE&G.

ITEM 6. SELECTED FINANCIAL DATA

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

      Unless the context  otherwise  indicates,  all  references to  "Transition
Funding,"  "we," "us" or "our"  herein  mean  PSE&G  Transition  Funding  LLC, a
Delaware limited liability company located at 80 Park Plaza,  Newark, New Jersey
07102.

      The  following  analysis  of  our  financial   condition  and  results  of
operations is in an abbreviated format pursuant to General Instruction I of Form
10-K. Such analysis should be read in conjunction with the financial  statements
attached hereto.

      On January 31, 2001, we issued $2.525 billion of transition bonds in eight
classes with stated maturities  ranging from 1 year to 15 years, of which $2.351
billion in seven classes  remain  outstanding.  The net proceeds of the issuance
were  utilized  to  acquire  PSE&G's  property  right  in the TBC  (see  Item 1.
Business).  We use  collections  of the  TBC to  make  scheduled  principal  and
interest   payments  on  the  transition  bonds  and  to  cover  any  additional
administrative costs.

RESULTS OF OPERATIONS

Operating Revenues

      Transition Bond Charge (TBC) revenues increased  approximately $52 million
or 21% for the year  ended  December  31,  2002 as  compared  to the year  ended
December 31, 2001  primarily due to revenues  being  recorded for a full year in
2002 as compared to eleven months in 2001. This was  supplemented by an increase
in the TBC rate,  as well as an increase in PSE&G's  electric  transmission  and
distribution  sales.  The TBC rate increased from 0.6739 cents per kwh to 0.7250
cents per kwh as part of our annual rate true-up,  which was approved by the New
Jersey Board of Public Utilities (BPU) effective in January 2002.

      As a result of the annual true-up approved by the BPU in January 2003, the
TBC rate  decreased to 0.7018  cents per kwh. Any  increases or decreases in the
TBC  rate  are   designed  to   maintain   the   Capital   Subaccount   and  the
Overcollateralization  account at appropriate  levels and have adequate funds to
meet our  scheduled  repayments  of the  deferred  issuance  costs to PSE&G,  as
servicer of the bonds.

Operating Expenses

Amortization of Bondable Transition Property (BTP)


                                       3
<PAGE>

      Amortization  of BTP  increased  approximately  $43 million or 53% for the
year ended  December  31, 2002 as compared to the year ended  December  31, 2001
primarily due to expenses  being recorded for a full year in 2002 as compared to
eleven months in 2001. This was  supplemented by an increase in the TBC rate and
an increase in sales as discussed above. As a regulated  entity,  we amortize an
amount equal to what we record as revenue for the portion of the TBC relating to
the BTP.  Accordingly,  the higher TBC rates in 2002  resulted in an increase of
the amortization that was recorded.

Servicing and Administrative Fees

      Servicing and  Administrative  Fees increased $178 thousand or 14% for the
year ended  December  31, 2002 as compared to the year ended  December  31, 2001
primarily due to the transition bonds being  outstanding for a full year in 2002
as compared to eleven months in 2001.  Administrative  expenses are billed to us
by the Servicer,  PSE&G,  when  interest and principal  payments are made on the
transition bonds.

Interest Income

      Interest Income decreased  approximately $614 thousand or 48% for the year
ended  December  31,  2002 as  compared  to the year  ended  December  31,  2001
primarily due to higher rates and higher  average cash balances in 2001 prior to
the initial bond and other related payments in September 2001.

Interest Expense

      Interest  expense  increased  approximately  $8 million or 5% for the year
ended  December  31,  2002 as  compared  to the year  ended  December  31,  2001
primarily due to the transition bonds being  outstanding for a full year in 2002
partially offset by a reduction in the total amount of debt outstanding.

LIQUIDITY AND CAPITAL RESOURCES

      The  principal  amount of the  Bonds,  interest,  fees and  funding of the
overcollateralization  subaccount are being recovered through the TBC payable by
retail  customers of electricity  within PSE&G's  service  territory who receive
electric  delivery  service  from PSE&G.  As part of PSE&G's  responsibility  as
servicer under the Servicing Agreement,  PSE&G remits the TBC collections to the
Trustee to make scheduled payments on the Bonds.

      During 2002, payments of bond principal, interest and all related expenses
were made by the Trustee on March 17, 2002,  June 17, 2002,  September  17, 2002
and December 17, 2002  totaling  approximately  $68  million,  $69 million,  $78
million and $82 million,  respectively,  including replenishments to the Capital
Subaccount  and the  Overcollateralization  account to required  levels.  During
2001, payments of bond principal, interest and all related expenses were made by
the Trustee on September 17, 2001 and December 17, 2001  totaling  approximately
$201 million.  These payments were primarily funded from our TBC collections and
interest earned on those funds.

ACCOUNTING ISSUES

      Critical Accounting Policies

      Unbilled Revenues

      The TBC is  usage-based  charge  based on  access  to  PSE&G's  electrical
transmission  and  distribution  system and is recorded based on electric usage.
These are recorded based on services  rendered to its retail electric  customers
during each accounting period. PSE&G records unbilled revenues for the estimated
amount customers will be billed for services  rendered from the time meters were
last read to the end of the  respective  accounting  period.  Unbilled  usage is
calculated  in two steps.  The initial  step is to apply a base usage per day to
the number of unbilled days in the period.  The second step  estimates  seasonal
loads based upon the time of year and the variance of actual degree-days and


                                       4
<PAGE>

temperature-humidity-index hours of the unbilled period from expected norms. The
resulting  usage is priced at current  rate levels and  recorded  as revenue.  A
calculation of the associated  energy cost for the unbilled usage is recorded as
well. Each month the prior month's unbilled amounts are reversed and the current
month's  amounts are  accrued.  The  resulting  revenue and expense  reflect the
billed data less the portion booked in the prior month plus the unbilled portion
of the current month.

      Accounting for the Effects of Regulation

      The  application of generally  accepted  accounting  principles by us as a
regulated entity differs in certain respects from  applications by non-regulated
businesses.   We  prepare  our  financial  statements  in  accordance  with  the
provisions  of  Statement  of  Financial  Accounting  Standards  (SFAS)  No.  71
"Accounting  for the  Effects  of Certain  Types of  Regulation"  (SFAS 71).  In
general,  SFAS 71 recognizes  that  accounting  for  rate-regulated  enterprises
should reflect the economic effects of regulation. As a result, a rate regulated
entity is required to defer the recognition of costs (a regulatory asset) or the
recognition  of  obligations  (a regulatory  liability) if it is probable  that,
through  the  rate-making  process,  there will be a  corresponding  increase or
decrease in future rates.  Accordingly,  we have deferred  certain costs,  which
will be amortized over various future periods.

FORWARD-LOOKING STATEMENTS

      Except for the historical  information  contained  herein,  certain of the
matters discussed in this report constitute "forward-looking  statements" within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
forward-looking  statements are subject to risks and  uncertainties  which could
cause  actual  results  to  differ  materially  from  those  anticipated.   Such
statements are based on management's  beliefs as well as assumptions made by and
information  currently  available to  management.  When used  herein,  the words
"will",  "anticipate",   "intend",  "estimate",   "believe",  "expect",  "plan",
"potential",  variations of such words and similar  expressions  are intended to
identify  forward-looking  statements.  We undertake no  obligation  to publicly
update or revise  any  forward-looking  statements,  whether  as a result of new
information,  future events or otherwise. The following review of factors should
not be construed as exhaustive.

      In addition to any assumptions and other factors  referred to specifically
in connection  with such  forward-looking  statements,  factors that could cause
actual   results  to  differ   materially   from  those   contemplated   in  any
forward-looking  statements  include,  among others,  the  following:  state and
federal  legal  or  regulatory  developments;   national  or  regional  economic
conditions;   market  demand  and  prices  for  energy;  customer  conservation;
distributed generation technology;  weather variations affecting customer energy
usage;  the  effect of  continued  electric  industry  restructuring;  operating
performance  of PSE&G's  facilities and third party  suppliers;  and the payment
patterns of customers  including the rate of  delinquencies  and the accuracy of
the collections curve.

ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES
         ABOUT MARKET RISK

      The market risk inherent in our  transition  bonds is the  potential  loss
arising from adverse changes in interest rates. We have entered into an interest
rate swap on our sole class (Class A-4) of floating rate  transition  bonds (see
Note 2. The Bonds).  The interest  rate swap  effectively  converts the existing
floating rate debt into fixed rate  borrowings  at 6.2875%.  Any gain or loss on
this  financial  instrument  will be  recovered  from  or  refunded  to  PSE&G's
customers.


                                       5
<PAGE>

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                          PSE&G TRANSITION FUNDING LLC
                              STATEMENTS OF INCOME
                                   (THOUSANDS)

                                                          For the Years Ended
                                                              December 31,
                                                        -----------------------
                                                           2002          2001
                                                        ---------     ---------
OPERATING REVENUES                                      $ 298,633     $ 246,496
OPERATING EXPENSES
   Amortization of Bondable Transition Property           125,324        81,967
   Servicing and Administrative Fees                        1,468         1,290
                                                        ---------     ---------
       Total Operating Expenses                           126,792        83,257
                                                        ---------     ---------
OPERATING INCOME                                          171,841       163,239
Interest Income                                               666         1,280
Interest Expense                                         (172,292)     (164,156)
                                                        ---------     ---------
NET INCOME                                              $     215     $     363
                                                        =========     =========

See Notes to Financial Statements.


                                       6
<PAGE>

                          PSE&G TRANSITION FUNDING LLC
                                 BALANCE SHEETS
                                   (THOUSANDS)

                                                      December 31,  December 31,
                                                         2002          2001
ASSETS                                                ----------    ----------
  Current Assets:
    Cash                                              $      578    $      363
    Restricted Cash                                       13,627        11,935
    Receivable from Member                                57,807        53,301
                                                      ----------    ----------
      Total Current Assets                                72,012        65,599
                                                      ----------    ----------

  Noncurrent Assets:
    Bondable Transition Property                       2,317,709     2,443,033
    Deferred Issuance Costs                               82,303        93,917
    Regulatory Assets - Interest Rate Swap                65,806        18,492
                                                      ----------    ----------
      Total Noncurrent Assets                          2,465,818     2,555,442
                                                      ----------    ----------
TOTAL ASSETS                                          $2,537,830    $2,621,041
                                                      ==========    ==========

LIABILITIES
  Current Liabilities:
    Current Portion of Long-Term Debt                 $  128,935    $  120,455
    Current Portion of Payable to Member                   6,200         4,757
    Regulatory Liability - Overcollateralization           1,632           780
    Accrued Interest                                       6,576        12,505
                                                      ----------    ----------
      Total Current Liabilities                          143,343       138,497
                                                      ----------    ----------

  Long-Term Liabilities:
    Long-Term Debt                                     2,222,221     2,351,156
    Derivative Liability                                  65,806        18,492
    Payable to Member                                     93,257        99,908
                                                      ----------    ----------
      Total Long-Term Liabilities                      2,381,284     2,469,556
                                                      ----------    ----------
TOTAL LIABILITIES                                      2,524,627     2,608,053
                                                      ----------    ----------

MEMBER'S EQUITY
  Contributed Capital                                     12,625        12,625
    Retained Earnings                                        578           363
                                                      ----------    ----------
    Total Member's Equity                                 13,203        12,988
                                                      ----------    ----------
TOTAL LIABILITIES AND MEMBER'S EQUITY                 $2,537,830    $2,621,041
                                                      ==========    ==========

See Notes to Financial Statements.


                                       7
<PAGE>

                          PSE&G TRANSITION FUNDING LLC
                            STATEMENTS OF CASH FLOWS
                                   (THOUSANDS)

                                              For the Years Ended December 31,
                                             ----------------------------------
                                               2002         2001         2000
                                             ---------   -----------   --------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                 $     215   $       363   $     --
  Adjustments to reconcile net income
    to net cash flows from operating
    activities:
  Amortization of Bondable Transition
    Property                                   125,324        81,967         --
  Amortization of Deferred Issuance Costs       11,614        10,642         --
  Net Changes in Certain Current Assets
    and Liabilities:
    Restricted Cash                             (1,692)      (11,935)        --
    Receivable from Member                      (4,506)      (52,286)        --
    Payable to Member                           (5,208)       68,046     36,619
    Overcollateralization                          852           780         --
    Accrued Interest                            (5,929)       12,856         --
    Other                                           --        (1,366)        --
                                             ---------   -----------   --------
    Net Cash Provided By Operating
      Activities                               120,670       109,067     36,619
                                             ---------   -----------   --------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of Bondable Transition
    Property                                        --    (2,525,000)        --
                                             ---------   -----------   --------
    Net Cash Used in Investing
      Activities                                    --    (2,525,000)        --
                                             ---------   -----------   --------
CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of Long-Term Debt                        --     2,525,000         --
  Repayment of Long-Term Debt                 (120,455)      (53,389)        --
  Deferred Issuance Costs                           --       (67,940)   (36,619)
  Contributed Capital                               --        12,624          1
                                             ---------   -----------   --------
    Net Cash Provided By (Used In)
      Financing Activities                    (120,455)    2,416,295    (36,618)
                                             ---------   -----------   --------
Net Change in Cash and Cash
  Equivalents                                      215           362          1
Cash and Cash Equivalents at
  Beginning of Period                              363             1         --
                                             ---------   -----------   --------
Cash and Cash Equivalents at
  End of Period                              $     578   $       363   $      1
                                             =========   ===========   ========

Interest Paid                                $ 166,968   $   141,008   $     --

See Notes to Financial Statements.


                                       8
<PAGE>

                          PSE&G TRANSITION FUNDING LLC
                          STATEMENTS OF MEMBER'S EQUITY
                                   (THOUSANDS)

<TABLE>
<CAPTION>
                                                  Contributed Capital   Retained Earnings   Total
                                                  -------------------   -----------------   -----

<S>                                                     <C>                   <C>          <C>
Balance as of January 1, 2000                           $    --               $ --         $    --
  Contributed Capital                                         1                 --               1
                                                        -------               ----         -------
Balance as of December 31, 2000                               1                 --               1
                                                        -------               ----         -------
  Net Income                                                 --                363             363
  Contributed Capital                                    12,624                 --          12,624
                                                        -------               ----         -------
Balance as of December 31, 2001                          12,625                363          12,988
                                                        -------               ----         -------
  Net Income                                                 --                215             215
                                                        -------               ----         -------
Balance as of December 31, 2002                         $12,625               $578         $13,203
                                                        =======               ====         =======
</TABLE>

See Notes to Financial Statements.


                                       9
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

Note 1. Organization, Basis of Presentation and Significant Accounting Policies

Organization

      Unless the context  otherwise  indicates,  all  references to  "Transition
Funding,"  "we," "us" or "our"  herein  mean  PSE&G  Transition  Funding  LLC, a
Delaware limited liability company located at 80 Park Plaza,  Newark, New Jersey
07102.

      We were  formed  under the laws of the State of  Delaware on July 21, 1999
and  operate  pursuant  to a limited  liability  company  agreement  with Public
Service  Electric  and Gas  Company  (PSE&G)  as our  sole  member.  PSE&G is an
operating  electric and gas utility and is a  wholly-owned  subsidiary of Public
Service  Enterprise Group  Incorporated  (PSEG).  We were organized for the sole
purpose of purchasing and owning  bondable  transition  property (BTP) of PSE&G,
issuing  transition  bonds  (Bonds),  pledging  our  interest  in BTP and  other
collateral to a debt/security  trustee (Trustee) to collateralize the Bonds, and
performing  activities that are necessary,  suitable or convenient to accomplish
these purposes.

      BTP  represents  the  irrevocable  right of  PSE&G,  or its  successor  or
assignee,  to collect a non-bypassable  transition bond charge (TBC) from retail
electric  customers  pursuant to a bondable  stranded  cost rate order  (Finance
Order), and rate unbundling and restructuring  proceedings (Final Order),  which
were issued on  September  17,  1999 by the State of New Jersey  Board of Public
Utilities (BPU) in accordance  with the New Jersey Electric  Discount and Energy
Competition  Act enacted in February  1999.  These orders are a matter of public
record and are available  from the BPU. The Finance Order  authorizes the TBC to
be sufficient to recover $2.525  billion  aggregate  principal  amount of Bonds,
plus an amount  sufficient  to provide for any credit  enhancement,  to fund any
reserves and to pay interest,  redemption  premiums,  if any, servicing fees and
other expenses relating to the Bonds.

      Our organizational  documents require us to operate in a manner so that we
should not be consolidated in the bankruptcy  estate of PSE&G in the event PSE&G
becomes subject to a bankruptcy proceeding.

Basis of Presentation

      The financial  statements  included herein have been prepared  pursuant to
the rules and regulations of the Securities and Exchange Commission.

Significant Accounting Policies

      Accounting for the Effects of Regulation

      The  application of generally  accepted  accounting  principles by us as a
regulated entity differs in certain respects from  applications by non-regulated
businesses.   We  prepare  our  financial  statements  in  accordance  with  the
provisions  of  Statement  of  Financial  Accounting  Standards  (SFAS)  No.  71
"Accounting  for the  Effects  of Certain  Types of  Regulation"  (SFAS 71).  In
general,  SFAS 71 recognizes  that  accounting  for  rate-regulated  enterprises
should reflect the economic effects of regulation. As a result, a rate regulated
entity is required to defer the recognition of costs (a regulatory asset) or the
recognition  of  obligations  (a regulatory  liability) if it is probable  that,
through  the  rate-making  process,  there will be a  corresponding  increase or
decrease in future rates.  Accordingly,  we have deferred  certain costs,  which
will be amortized over various future periods.


                                       10
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

      Restricted Cash

      Revenues  collected  through  the TBC by PSE&G  from its  retail  electric
customers  are  remitted to the  Trustee and must be used to pay the  principal,
interest and other expenses  associated with the Bonds. Also, as required by the
Finance  Order,  we deposited  an amount equal to 0.5% of the initial  principal
amount of the bonds into the Capital  Subaccount  with the Trustee.  This amount
was  contributed  by PSE&G to us. This account is the last account  drawn in the
event  funds are  insufficient  to make  scheduled  allocations.  If the Capital
Subaccount is used, it will be replenished  from TBC remittances to its original
level  through  the  periodic  reconciliation  process.   Accordingly,  the  TBC
collections remitted to the Trustee,  including interest earned related to these
funds,  and the funds  deposited  into the Capital  Subaccount are classified as
"Restricted Cash" on the Balance Sheet.

      Bondable Transition Property

      The BTP was recorded at the acquired cost and is being  amortized over the
life of the Bonds, based on TBC revenues,  interest expenses and other fees. The
BTP is solely our property.

      Deferred Issuance Costs

      The  securitization  transaction  issuance  costs  in  excess  of the $125
million provided for in the Finance Order were funded by PSE&G and are recovered
on a subordinated  basis through the TBC. These costs were  capitalized  and are
being  amortized to interest  expense over the life of the bonds  utilizing  the
effective interest method.

      Regulatory Assets - Interest Rate Swap

      For a description of the regulatory asset and the corresponding derivative
liability  related to the interest  rate swap on our sole class of floating rate
debt, see Note 2. The Bonds.

      Regulatory Liabilities - Overcollateralization

      The  overcollateralization  account is funded ratably from  collections of
TBC over the term of each series of transition bonds. The account is held by the
trustee as a credit  enhancement  to fund  payments in the event of a collection
shortfall.

      Revenues

      Revenues  are  recorded  on a  calendar  month  basis,  based on  services
rendered by PSE&G to its customers during each accounting  period at the current
rate  (including  the TBC) and also include  estimates for usage not yet billed.
PSE&G records  unbilled  revenues for the  estimated  amount  customers  will be
billed for services  rendered  from the time meters were last read to the end of
the respective  accounting  period. The unbilled revenue is estimated each month
based on weather factors,  line losses,  estimated  customer usage by class, and
applicable customer rates based on regression  analyses  reflecting  significant
historical trends and experience.

      Amortization Expense

      Amortization  expense is recorded on the BTP using the effective  interest
method.  Amortization expense is also adjusted based on the TBC revenue recorded
and the deferred issuance costs.

      Interest Income

      Interest Income  consists of interest earned on TBC collections  deposited
with the  Trustee  and  interest  earned  on funds  in the  Capital  Subaccount.
Interest  earned on  deposited  TBC funds  reduce  the BTP and will  affect  the
calculation  of  future  TBC  rates.  Interest  earned  on funds in the  Capital
Subaccount  results in Net Income for us and will be periodically  dividended to
PSE&G.


                                       11
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

      Interest Expense

      Interest  Expense  consists  primarily  of  interest  on the  Bonds.  Also
included in Interest Expense is the amortization of the deferred  issuance costs
and related interest on the obligation to PSE&G.

      Income Taxes

      We are a single-member limited liability company. Accordingly, all Federal
and State income tax effects of our activities accrue to PSE&G.

      Accounting Matters

      Statement of  Financial  Accounting  Standards  No. 133,  "Accounting  for
Derivative Instruments and Hedging Activities" (SFAS 133) established accounting
and reporting  standards for  derivative  instruments.  It requires an entity to
recognize the fair value of derivative instruments held as assets or liabilities
on the balance sheet. In accordance with SFAS 133, the effective  portion of the
change in the fair value of a derivative  instrument  designated  as a cash flow
hedge  is  reported  as a  Regulatory  Asset  or  Liability  and are  ultimately
recognized in earnings when the related hedged  forecasted  transaction  occurs.
The  change  in the fair  value of the  ineffective  portion  of the  derivative
instrument  designated  as a cash flow hedge is recorded in  earnings.  The fair
value of the derivative  instruments is determined by reference to quoted market
prices,   listed   contracts,    published   quotations   or   quotations   from
counterparties.  For  information  relating to our interest rate swap agreement,
see Note 2. The Bonds.

      Use of Estimates

      The  preparation  of financial  statements  in conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions.  These  estimates  and  assumptions  affect the reported  amount of
revenues,  expenses,  assets  and  liabilities,  as  well as the  disclosure  of
contingencies. Actual results could differ from these estimates.

      Reclassifications

      Certain  reclassifications  of amounts reported in prior periods have been
made to conform with the current presentation.

Note 2. The Bonds

      On January 31, 2001,  we issued  $2.525  billion of Bonds in eight classes
with maturities  ranging from one year to fifteen years, of which $2.351 billion
remain  outstanding  as of December 31,  2002.  The net proceeds of the issuance
were remitted to PSE&G as consideration for the property right in the TBC.

      Under  applicable law, the Bonds are not an obligation of PSE&G or secured
by the assets of PSE&G,  but rather  the Bonds are only  recourse  to us and are
collateralized  on a pro rata basis by the BTP and our equity  and  assets.  TBC
collections  are  deposited  at least  monthly by PSE&G with the Trustee and are
used to pay our  expenses,  to pay our debt service on the Bonds and to fund any
credit  enhancement for the Bonds. We have also pledged the capital  contributed
by PSE&G to secure the debt service  requirements of the Bonds. The debt service
requirements include an  overcollateralization  subaccount, a capital subaccount
and a reserve  subaccount  which are  available  to bond  holders.  Any  amounts
collateralizing the Bonds will be returned to PSE&G upon payment of the Bonds.


                                       12
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

The significant  terms of the Bonds issued by Transition  Funding as of December
31, 2002 are as follows:

<TABLE>
<CAPTION>
            ===================================================================================================
                                           Payments
                                            Made On
                                             Bonds
                Initial                     Through        Current      Noncurrent       Final/        Final
               Principal     Interest       December       Portion        Portion       Expected      Maturity
                Balance        Rate         31, 2002     Outstanding    Outstanding   Payment Date      Date
===============================================================================================================
<S>         <C>                <C>        <C>            <C>           <C>                <C>          <C>
Class A-1   $  105,249,914     5.46%      $105,249,914             --              --     6/17/02        --
Class A-2   $  368,980,380     5.74%      $ 68,593,784   $128,935,356  $  171,451,240     3/15/05      3/15/07
Class A-3   $  182,621,909     5.98%                --             --  $  182,621,909     6/15/06      6/15/08
Class A-4   $  496,606,425    LIBOR +               --             --  $  496,606,425     6/15/09      6/15/11
                               0.30%

Class A-5   $  328,032,965     6.45%                --             --  $  328,032,965     3/15/11      3/15/13
Class A-6   $  453,559,632     6.61%                --             --  $  453,559,632     6/15/13      6/15/15
Class A-7   $  219,688,870     6.75%                --             --  $  219,688,870     6/15/14      6/15/16
Class A-8   $  370,259,905     6.89%                --             --  $  370,259,905    12/15/15     12/15/17
            --------------                ------------   ------------  --------------
Total       $2,525,000,000                $173,843,698   $128,935,356  $2,222,220,946
===============================================================================================================
</TABLE>

      We have entered  into an interest  rate swap on our sole class of floating
rate Bonds (Class A-4). The interest rate swap effectively converts the existing
floating rate debt into fixed rate borrowings at 6.2875%. The notional amount of
the interest rate swap is $497 million and is indexed to the  three-month  LIBOR
rate. The fair value of the interest rate swap was  approximately  $(66) million
as of  December  31,  2002 and $(18)  million as of  December  31,  2001 and was
recorded as a derivative  liability,  with an  offsetting  amount  recorded as a
regulatory  asset on the  Balance  Sheet.  The fair value of this swap will vary
over time as a result of  changes in market  conditions  and is  expected  to be
recovered through the TBC.

      We incurred  approximately $230 million in issuance costs, $125 million of
which were  included  in BTP with the  balance in deferred  issuance  costs,  in
connection with the securitization transaction,  including $201 million of costs
of a hedging  arrangement as permitted by the Finance Order.  Costs in excess of
the $125 million of  transaction  costs  provided for in the Finance  Order were
paid by PSE&G and are being recovered on a subordinated  basis by us through the
TBC and remitted to PSE&G with interest at a rate of 6.48%. The initial TBC rate
became effective on February 7, 2001, in accordance with the Final Order.

Note 3. Significant Agreements and Related Party Transactions

      Under the servicing  agreement entered into by PSE&G and us,  concurrently
with the issuance of the first Series of Bonds, PSE&G, as servicer,  is required
to manage and administer our BTP and to collect the TBC on our behalf. Under the
Finance Order,  PSE&G withholds from the TBC collections an annual servicing fee
equal  to  0.05%  of  the  initial  balance  of  Bonds  issued.   Servicing  and
administrative  fees paid to PSE&G for the year ended December 31, 2002 and 2001
were $1.5 million and $1.3 million, respectively.

      As of December 31, 2002 and December  31, 2001,  we had a receivable  from
our member,  PSE&G, of approximately $58 million and $53 million,  respectively,
relating to TBC  billings.  As of December  31, 2002 and  December  31, 2001 our
payable  to  our  member  was   approximately  $99  million  and  $105  million,
respectively, which primarily relates to the costs in excess of the $125 million
of  transaction  costs provided for in the Finance Order that were paid by PSE&G
and billed to us.


                                       13
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

Note 4. Selected Quarterly Data (Unaudited)

      The information shown below, in the opinion of Transition Funding includes
all adjustments,  consisting only of normal recurring  accruals,  necessary to a
fair presentation of such amounts.

<TABLE>
<CAPTION>
                                                                           Calendar Quarter Ended
                                         -------------------------------------------------------------------------------------------
                                              March 31,               June 30,              September 30,            December 31,
                                         -------------------     -------------------     -------------------     -------------------
                                          2002        2001        2002        2001        2002        2001        2002        2001
                                         -------     -------     -------     -------     -------     -------     -------     -------
                                                                                 (Thousands)
<S>                                      <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
Operating Revenues .................     $67,545     $36,690     $71,099     $66,747     $89,258     $78,616     $70,731     $64,443
Operating Income ...................      42,875      30,055      43,400      44,678      43,001      44,431      42,565      44,075
Net Income .........................          61          --          58         230          58          90          38          43
</TABLE>


                                       14
<PAGE>

                          INDEPENDENT AUDITORS' REPORT

To the Managers of PSE&G Transition Funding LLC:

      We have  audited  the  accompanying  balance  sheets  of PSE&G  Transition
Funding LLC (the "Company") as  of December 31, 2002 and December 31, 2001,  the
related  statements  of  income  for each of the two years in the  period  ended
December 31, 2002 and the related  statements of member's  equity and cash flows
for each of the  three  years in the  period  ended  December  31,  2002.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

      We conducted our audits in accordance  with auditing  standards  generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

      In our opinion,  such financial statements present fairly, in all material
respects,  the  financial  position of the  Company as of December  31, 2002 and
2001,  the  results  of its  operations  for each of the two years in the period
ended  December  31,  2002 and its cash flows for each of the three years in the
period  ended  December 31,  2002,  in  conformity  with  accounting  principles
generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Parsippany, New Jersey

March 4, 2003


                                       15
<PAGE>

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
        ON ACCOUNTING AND FINANCIAL DISCLOSURE

      NONE.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE
         REGISTRANT

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.

ITEM 11. EXECUTIVE COMPENSATION

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
         OWNERS AND MANAGEMENT

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

      Omitted pursuant to conditions set forth in General Instruction I of Form
10-K.

ITEM 14. DISCLOSURE CONTROLS AND PROCEDURES

      PSE&G Transition Funding LLC (the "Company") has established and maintains
disclosure  controls and  procedures  which are  designed to provide  reasonable
assurance that material information relating to the Company is made known to the
Chief  Executive  Officer,  who also  serves  as the  Chief  Financial  Officer,
particularly  during the period in which this annual  report is being  prepared.
The Company has  established a Disclosure  Committee which is made up of several
key management employees and reports directly to the Chief Executive Officer and
Chief Financial Officer,  to monitor and evaluate these disclosure  controls and
procedures.  The Chief Executive Officer, has evaluated the effectiveness of the
disclosure  controls  and  procedures  as of a date  within 90 days prior to the
filing  date of this  annual  report  (the  "Evaluation  Date").  Based  on this
evaluation,  he has concluded that the disclosure  controls and procedures  were
effective  during  the  period  covered  in this  annual  report.  There were no
significant  changes  in  internal  controls  or in  other  factors  that  could
significantly affect internal controls subsequent to the date of our most recent
evaluation.


                                       16
<PAGE>


                Certification Pursuant to Rules 13a-14 and 15d-14
                       of the 1934 Securities Exchange Act

      I certify that:

1.    I have  reviewed  this  annual  report  on Form  10-K of PSE&G  Transition
      Funding LLC (the registrant);

2.    Based on my  knowledge,  this  annual  report  does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the  circumstances  under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information included in this annual report, fairly present in all material
      respects the financial condition,  results of operations and cash flows of
      the  registrant  as of, and for,  the  periods  presented  in this  annual
      report;

4.    I am responsible for establishing and maintaining  disclosure controls and
      procedures  (as defined in Exchange  Act Rules  13a-14 and 15d-14) for the
      registrant and have:

      a)    designed  such  disclosure  controls and  procedures  to ensure that
            material  information relating to the registrant is made known to me
            by others,  particularly  during  the  period in which  this  annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented  in  this  annual  report  my   conclusions   about  the
            effectiveness of the disclosure  controls and procedures based on my
            evaluation as of the Evaluation Date;

5.    I have disclosed,  based on my most recent evaluation, to the registrant's
      auditors and the audit committee of PSEG's board of directors:

      a)    all significant  deficiencies in the design or operation of internal
            controls which could adversely  affect the  registrant's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified any material weaknesses in internal controls; and

      b)    any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal controls; and

6.    I  have  indicated  in  this  annual  report  whether  or not  there  were
      significant  changes in internal  controls or in other  factors that could
      significantly  affect internal controls subsequent to the date of our most
      recent  evaluation,  including  any  corrective  actions  with  regard  to
      significant deficiencies and material weaknesses.

           Date: March 17, 2003                /s/ Robert E. Busch
                                               ---------------------------------
                                               Robert E. Busch
                                               Chief Executive Officer and Chief
                                               Financial Officer


                                       17
<PAGE>

                                    PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
         REPORTS ON FORM 8-K

(A)   The following documents are filed as part of this report:

      PSE&G  Transition  Funding  LLC  Statements of Income for the years  ended
      December 31, 2002 and 2001 on page 6.

      PSE&G  Transition  Funding LLC Balance Sheets as of December 31, 2002 and
      2001 on page 7.

      PSE&G Transition  Funding LLC Statements of Cash Flows for the years ended
      December 31, 2002, 2001 and 2000 on page 8.

      PSE&G  Transition  Funding LLC Statements of Member's Equity for the years
      ended December 31, 2002, 2001 and 2000 on page 9.

      PSE&G  Transition  Funding LLC Notes to Financial Statements  on pages 10
      through 14.

(B)   There were no reports on Form 8-K filed during the last quarter of 2002
      and the 2003 period covered by this report.


                                       18
<PAGE>

                                   SIGNATURES

      Pursuant  to the  requirements  of Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                       PSE&G Transition Funding LLC

                                       By   /s/ ROBERT E. BUSCH
                                          --------------------------------------
                                            Robert E. Busch
                                            President, Chief Executive Officer
                                            and Chief Financial Officer

Date: March 17, 2003

      Pursuant to the requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities and on the dates indicated.

          Signature                           Title                   Date
          ---------                           -----                   ----

       ROBERT E. BUSCH           President, Chief Executive       March 17, 2003
-------------------------------  Officer, Chief Financial
       Robert E. Busch           Officer and Manager (Principal
                                 Executive Officer and Principal
                                 Financial Officer)

       MORTON A. PLAWNER         Vice President, Treasurer and    March 17, 2003
-------------------------------  Manager
       Morton A. Plawner

       PATRICIA A. RADO          Controller                       March 17, 2003
-------------------------------  (Principal Accounting Officer)
       Patricia A. Rado

       R. EDWIN SELOVER          Manager                          March 17, 2003
-------------------------------
       R. Edwin Selover

       BENJAMIN B. ABEDINE       Manager                          March 17, 2003
-------------------------------
       Benjamin B. Abedine

       DEAN A. CHRISTIANSEN      Manager                          March 17, 2003
-------------------------------
       Dean A. Christiansen


                                       19

<PAGE>

EXHIBIT INDEX

      Certain Exhibits previously filed with the Commission and the appropriate
securities exchanges are indicated as set forth below. Such Exhibits are not
being refiled, but are included because inclusion is desirable for convenient
reference.

(a)   Filed by Transition Funding with Registration Statement No. 333-83635
      under the Securities Act of 1933, effective January 23, 2001, relating to
      the issuance of $2,525,000,000 Transition Bonds.

(b)   Filed by Transition Funding with Form 8-K under the Securities Exchange
      Act of 1934, on February 7, 2001.

-----------------------------
       Exhibit Number
-----------------------------
This Filing   Previous Filing
-----------------------------

    1.1      (b)     1.1      Underwriting Agreement dated as of January 25,
                              2001 among Public Service Electric and Gas
                              Company, PSE&G Transition Funding LLC and Lehman
                              Brothers, Inc., on behalf of itself and as the
                              representative of the several underwriters named
                              therein

    3.1      (a)     4.1      Limited Liability Company Agreement of PSE&G
                              Transition Funding LLC

   3.1.1     (b)    4.1.1     Form of Amended and Restated Limited Liability
                              Company Agreement of PSE&G Transition Funding LLC
                              dated as of January 31, 2001

    3.2      (a)     4.2      Certificate of Formation of PSE&G Transition
                              Funding LLC

   3.2.1     (b)    4.2.1     Form of Amended and Restated Certificate of
                              Formation of PSE&G Transition Funding LLC dated as
                              of January 25, 2001, which was filed with the
                              Delaware Secretary of State's Office on January
                              26, 2001

    4.1      (a)     4.3      Form of Indenture

   4.1.1     (b)    4.3.1     Indenture dated as of January 31, 2001 between
                              PSE&G Transition Funding LLC and The Bank of New
                              York

   4.1.2     (b)    4.3.2     Series Supplement dated as of January 31, 2001
                              between PSE&G Transition Funding LLC and The Bank
                              of New York

    4.2      (a)     4.4      Form of Transition Bonds

   10.1      (b)     10.1     Bondable Transition Property Sale Agreement dated
                              as of January 31, 2001 between Public Service
                              Electric and Gas Company and PSE&G Transition
                              Funding LLC

   10.2      (b)     10.2     Servicing Agreement dated as of January 31, 2001
                              between PSE&G Transition Funding LLC and Public
                              Service Electric and Gas Company

   10.3      (a)     10.3     Petition of PSE&G to the State of New Jersey Board
                              of Public Utilities, dated June 8, 1999

   10.4      (a)     10.4     Financing Order of the BPU issued September 17,
                              1999

   25.1      (a)     25.1     Statement of Eligibility under the Trust Indenture
                              Act of 1939, as amended, of The Bank of New York,
                              as Trustee under the Indenture

   99.1      (a)     99.1     Final BPU restructuring order issued August 24,
                              1999

   99.2      (a)     99.2     Internal Revenue Service Private Letter Ruling
                              pertaining to Transition Bonds

   99.3                       Certification by Robert E. Busch,  Chief Executive
                              Officer and Chief Financial  Officer,  pursuant to
                              Section  1350 of  Chapter  63 of  Title  18 of the
                              United States Code.


                                      20