Pricing Supplement dated November 6, 2003       Filed Pursuant to Rule 424(b)(3)
(To Prospectus Supplement dated                       Registration No. 333-98617
  September 3, 2003 and Prospectus
  dated September 12, 2002)

                 PUBLIC SERVICE ELECTRIC AND GAS COMPANY (PSE&G)
                      Secured Medium-Term Notes, Series C

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  CUSIP: 74456QAM8
  Trade Date: November 6, 2003
  Original Issue Date: November 12, 2003
  Principal Amount: $250,000,000
  Price to Public: 99.907% of Principal Amount, plus accrued interest from the
    Original Issue Date if settlement occurs after that date
  Agents' Commission: $1,250,000
  Net Proceeds to Company: $248,517,500
  Interest Rate: 4% per annum
  Interest Accrual Date: November 12, 2003
  Interest Payment Dates: May 1 and November 1,
    commencing May 1, 2004
  Maturity Date: November 1, 2008

  These Notes are DTC Eligible and will be issued in
     Book-entry form

  Agents:
  [ ] Banc One Capital Markets, Inc.
  [ ] BNP PARIBAS
  [ ] Credit Suisse First Boston
  [ ] Deutsche Bank Securities
  [X] JPMorgan ($75,000,000)
  [X] M.R. Beal & Company ($12,500,000)
  [X] Ramirez & Co., Inc. ($12,500,000)
  [X] Scotia Capital ($75,000,000)
  [X] UBS Investment Bank ($75,000,000)

  Agents' Capacity: Agent of PSE&G

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Redemption Provisions:

      The Secured  Medium-Term  Notes,  Series C, offered  hereby  (the "Secured
Medium-Term Notes") will be subject to redemption as described in the prospectus
and prospectus supplement.

      Additionally,  the Secured Medium-Term Notes will be subject to redemption
at any time prior to the  Maturity  Date on not less than 30 days prior  written
notice to holders,  either as a whole or in part,  at the option of PSE&G,  at a
redemption price equal to the greater of (i) 100% of the principal amount of the
Secured  Medium-Term Notes to be redeemed and (ii) the sum of the present values
of the remaining scheduled payments of principal and interest thereon discounted
to  the  redemption  date  on a  semi-annual  basis  (assuming  a  360-day  year
consisting of twelve  30-day  months) at the Treasury Rate plus 20 basis points,
plus, in either case, accrued interest thereon to the date of redemption.

      "Treasury Rate" means,  with respect to any redemption  date, the rate per
annum equal to the  semi-annual  equivalent  yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

      "Comparable  Treasury  Issue" means the United  States  Treasury  security
selected by an Independent  Investment Banker as having a maturity comparable to
the remaining term of the Secured Medium-Term Notes to be redeemed that would be
utilized,  at the time of selection and in accordance  with customary  financial
practice,  in pricing new issues of  corporate  debt  securities  of  comparable
maturity to the remaining term of the Secured Medium-Term Notes to be redeemed.

      "Comparable  Treasury Price" means,  with respect to any redemption  date,
(i)  the  average  of  three  Reference  Treasury  Dealer  Quotations  for  such
redemption  date,  after  excluding  the  highest  and lowest of five  Reference
Treasury  Dealer  Quotations,  or (ii) if the  Trustee is unable to obtain  five
Reference  Treasury  Dealer  Quotations,  the average of all Reference  Treasury
Dealer Quotations so obtained.

      "Independent  Investment  Banker"  means  one  of the  Reference  Treasury
Dealers appointed by PSE&G and acceptable to the Trustee.

      "Reference  Treasury  Dealer" means a primary U.S.  Government  Securities
Dealer in New York City (a  "Primary  Treasury  Dealer")  selected  by PSE&G and
acceptable to the Trustee.

      "Reference  Treasury  Dealer  Quotations"  means,  with  respect  to  each
Reference Treasury Dealer and any redemption date, the average, as determined by
the  Trustee,  of the bid and asked  prices for the  Comparable  Treasury  Issue
(expressed,  in each case, as a percentage of its  principal  amount)  quoted in
writing to the Trustee by such Reference Treasury Dealer at or before 5:00 p.m.,
New York City time, on the third business day preceding such redemption date.