Pricing Supplement No.4 Dated May 18, 1994
(To Prospectus dated July 20, 1993)
                                           Filed Pursuant to Rule 424(b)(3)
                                                  Registration No. 33-49367

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
SECURED MEDIUM-TERM NOTES, SERIES A

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CUSIP Number: 74456Q AD 8      Interest Rate: 8.10%
Principal Amount: $43,500,000  Interest Payment Dates: January 1 and July 1
Price to Public:               Maturity Date: May 26, 2009
 100% of Principal Amount      Trade Date: May 17, 1994
                               Original Issue Date: May 23, 1994
These Notes are DTC Eligible   Net Proceeds to Company : $43,239,000
 and will be issued in         Agents' Discount or Commission: $261,000
 Book-Entry Form Only          Interest From: May 23, 1994
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Optional Redemption Provisions:

     The Notes will not be subject to redemption prior to maturity either
as a whole or in part at the option of Public Service Electric and Gas
Company ("Company").

Certain Financial Information:

     The following documents heretofore filed by the Company with the
Securities and Exchange Commission are incorporated herein by reference:

     1.  The Company's Annual Report on Form 10-K for the year ended
December 31, 1993, filed pursuant to the Securities Exchange Act of 1934
("1934 Act").

     2.  The Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1994, filed pursuant to the 1934 Act.

     3.  The Company's Current Report on Form 8-K dated January 21, 1994,
filed pursuant to the 1934 Act.

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Use of Proceeds:

     The net proceeds from the sale of the Notes, together with the net
proceeds of the sale of an additional $16,500,000 of the Company's Secured
Medium-Term Notes, Series A expected to have an original issue date of May
23, 1994, will be added to the general funds of the Company and will be
used to finance a portion of the Company's current construction program and
to reimburse its treasury for funds expended to refund and redeem and/or
defease certain debt obligations, including the payment of short-term debt
obligations incurred for such purposes.  Short-term debt obligations are
expected to aggregate approximately $471,000,000 at the time the proceeds
of the Notes are received.

     The Company is defeasing in substance all of the $122,500,000
principal amount of its First and Refunding Mortgage Bonds, 9 3/4% Series
AA due 2020 by depositing a portfolio of United States Treasury securities
to service and redeem the issue on July 1, 1995.

Agents:
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          X Merrill Lynch & Co.
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          X Citicorp Securities, Inc.
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          X Morgan Stanley & Co. Incorporated
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