Filed pursuant to Rule 433
                                                                     May 7, 2007

Pricing Term Sheet for 5.80% Secured Medium Term Notes, Series E Notes due 2037
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                 PUBLIC SERVICE ELECTRIC AND GAS COMPANY (PSE&G)
                       Secured Medium-Term Notes, Series E

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  Issuer: Public Service Electric and Gas Company

  Trade Date: May 7, 2007

  Original Issue Date/Settlement Date: May 14, 2007, which is the fifth business
    day following the Trade Date. Accordingly, purchasers who wish to trade the
    notes on the date hereof or the next business day will be required, because
    the notes will not initially settle in T+3, to specify an alternative
    settlement date at the time of such trade to prevent a failed settlement and
    should consult their own advisors.

  Principal Amount: $350,000,000

  Price to Public: 99.805% of Principal Amount, plus accrued interest from the
    Original Issue Date if settlement occurs after that date

  Interest Rate: 5.80% per annum

  Interest Payment Dates: May 1 and November 1, commencing November 1, 2007

  Redemption: As specified in Preliminary Pricing Supplement dated May 7, 2007.
    Make Whole to be determined at a discount rate equal to the Treasury Rate
    plus 20 basis points.

  Maturity Date: May 1, 2037

  CUSIP: 74456QAR7

  Underwriters:
    Banc of America Securities LLC ($108,500,000)
    J.P. Morgan Securities Inc. ($108,500,000)
    Wachovia Capital Markets, LLC ($98,000,000)
    CastleOak Securities, L.P. ($17,500,000)
    Jackson Securities LLC ($17,500,000)

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
Banc of America Securities LLC at  1-800-294-1322,  J.P. Morgan Securities Inc.,
collect, at 1-212-834-4533 or Wachovia Capital Markets, LLC at 1-866-289-1262.