Exhibit 12.1

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	For the Nine Months				For the Years Ended
	Ended September 30,				December 31,
	2007		2006		2006		2005		2004		2003		2002
	(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations	$	516	$	360	$	448	$	583	$	592	$	376	$	320
Fixed Charges		250		254		346		342		362		390		408
Earnings	$	766	$	614	$	794	$	925	$	954	$	766	$	728
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense	$	250	$	254	$	346	$	342	$	362	$	390	$	406
Interest Factor in Rentals		-		-		-		-		-		-		2
Total Fixed Charges	$	250	$	254	$	346	$	342	$	362	$	390	$	408
Ratio of Earnings to Fixed Charges		3.06		2.42		2.29		2.70		2.64		1.96		1.78

(A)	The term "earnings" shall be defined as pretax income from continuing operations. Add to pretax income the amount of fixed charges adjusted to exclude the amount of any interest capitalized during the period.
(B)	Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense and (c) an estimate of interest implicit in rentals.