Pricing Supplement dated June 22, 2005          Filed Pursuant to Rule 424(b)(3)
(To Prospectus Supplement dated August 16, 2004      Registration No. 333-115100
  and Prospectus dated June 21, 2004)

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


=================================================================================================================
                                                         
CUSIP: 74456QAP1                                            These Notes are DTC Eligible and will be issued in
Trade Date: June 22, 2005                                     Book-entry form
Original Issue Date: July 1, 2005
Principal Amount: $250,000,000                              Agents:
Price to Public: 99.685% of Principal Amount, plus          [_] Banc of America Securities LLC
  accrued interest from the Original Issue Date if          [X] Barclays Capital ($50,000,000)
  settlement occurs after that date                         [_] BNP PARIBAS
Agents' Commission: $1,875,000                              [_] Citigroup
Net Proceeds to Company: $247,337,500                       [X] Deutsche Bank Securities ($50,000,000)
Interest Rate: 5.25% per annum                              [_] Jackson Securities
Interest Accrual Date: July 1, 2005                         [X] JPMorgan ($50,000,000)
Interest Payment Dates: January 1 and July 1,               [_] M.R. Beal & Company
  commencing January 1, 2006                                [X] Scotia Capital ($50,000,000)
Regular Record Dates: December 15 and June 15               [X] UBS Investment Bank ($50,000,000)
Maturity Date: July 1, 2035                                 [_] The Williams Capital Group, L.P.

                                                            Agents' Capacity: Agent of PSE&G
===================================================================================================================



Redemption Provisions:

      The Secured  Medium-Term  Notes,  Series D 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 (exclusive
of accrued interest to the redemption date) 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
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 the United States (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.

Use of Proceeds:

      The net proceeds  from the sale of the Secured  Medium-Term  Notes will be
added to the general funds of PSE&G and will be used to refund  $125,000,000  of
its 9 1/8% Series BB First and Refunding Mortgage Bonds due 2005 on July 1, 2005
and to reduce its short-term debt consisting of commercial paper.

Delayed Settlement:

      Delivery of the Secured  Medium-Term  Notes will be made  against  payment
therefor  on or about July 1, 2005,  which will be on the seventh  business  day
following the date on which the Secured  Medium-Term  Notes are priced  ("T+7").
Under  Rule  15c6-1  of the  Securities  Exchange  Act of  1934,  trades  in the
secondary  market  generally are required to settle in three business days after
the date the  securities  are  priced,  unless  the  parties  to any such  trade
expressly  agree  otherwise.  Accordingly,  purchasers who wish to trade Secured
Medium-Term  Notes on the day of pricing or the next three  succeeding  business
days will be required,  by virtue of the fact that the Secured Medium-Term Notes
will settle in T+7, to specify an  alternative  settlement  cycle at the time of
any such trade to  prevent a failed  settlement.  Such  purchasers  should  also
consult their own advisors in this regard.