FWP 1 e25802fwp.txt FREE WRITING PROSPECTUS Filed pursuant to Rule 433 December 13, 2006 Relating to Preliminary Pricing Supplement dated December 13, 2006 to Prospectus Supplement dated August 16, 2004 and Prospectus dated June 21, 2004 Registration Statement No. 333-115100 Pricing Term Sheet for 5.70% Secured Medium Term Notes, Series D due 2036 ------------------------------------------------------------------------------ PUBLIC SERVICE ELECTRIC AND GAS COMPANY (PSE&G) Secured Medium-Term Notes, Series D ================================================================================ Issuer: Public Service Electric & Gas Company Trade Date: December 13, 2006 Original Issue Date: December 18, 2006 Principal Amount: $250,000,000 Price to Public: 99.576% of Principal Amount, plus accrued interest from the Original Issue Date if settlement occurs after that date Agents' Commission: $1,875,000 Net Proceeds to Company: $247,065,000 Interest Rate: 5.70% per annum Settlement Date: December 18, 2006 Interest Payment Dates: June 1 and December 1, commencing June 1, 2007 Redemption: As specified in Preliminary Pricing Supplement dated December 13, 2006. Make Whole to be determined at a discount rate equal to the Treasury Rate plus 20 basis points. Maturity Date: December 1, 2036 CUSIP: 74456QAQ9 Agents: [X] Barclays Capital Inc. ($55,000,000) [X] BNP Paribas Securities Corp. ($55,000,000) [X] Citigroup Global Markets Inc. ($55,000,000) [X] Scotia Capital (USA) Inc. ($55,000,000) [X] Toussaint Capital Partners, LLC ($15,000,000) [X] The Williams Capital Group, L.P. ($15,000,000) ================================================================================ The issuer has filed a registration statement (including a prospectus, a prospectus supplement and a preliminary pricing supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus, the prospectus supplement and the preliminary pricing supplement in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer or any agent participating in the offering will arrange to send you these documents if you request them by calling Barclays Capital Inc. at 1-888-227-2275 ext. 2663, BNP Paribas Securities Corp. at 1-800-854-5674 or Citigroup Global Markets Inc. at 1-877-858-5407.