EXHIBIT 21a

                     PUBLIC SERVICE ELECTRIC AND GAS COMPANY
                            SIGNIFICANT SUBSIDIARIES



                                                                      State of
Name                                                 Ownership %   Incorporation
----                                                 -----------   -------------
                                                                 
PSE&G Transition Funding LLC.......................       100          Delaware


     The remaining subsidiaries of Public Service Electric and Gas Company are
not significant subsidiaries as defined in Regulation S-X.