EXHIBIT 12.3

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Plus Preferred Security Dividend Requirements

	For the Three Months Ended March 31,					For the Years Ended December 31,
	2012			2011		2011			2010			2009			2008			2007
	(Millions, except ratios)
Earnings as Defined in Regulation S-K (A):
Pre-tax Income from Continuing Operations	$	279		$	274	$	861		$	591		$	551		$	592		$	637
Fixed Charges		76			80		319			327			323			332			339
Capitalized Interest		(2	)		0		(4	)		(2	)		(1	)		0			0
Preferred Securities Dividend Requirements of Subsidiaries		0			0		0			(2	)		(6	)		(6	)		(6	)
Total Earnings	$	353		$	354	$	1,176		$	914		$	867		$	918		$	970
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense	$	75		$	79	$	314		$	320		$	313		$	325		$	332
Interest Factor in Rentals		1			1		5			5			4			0			0
Preferred Securities Dividends		0			0		0			1			4			4			4
Adjustments to state Preferred Securities Dividends on a pre-income tax basis		0			0		0			1			2			2			2
Total Fixed Charges	$	76		$	80	$	319		$	327		$	323		$	331		$	338
Ratio of Earnings to Fixed Charges		4.64			4.43		3.69			2.80			2.68			2.77			2.87

(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 (a) the amount of any interest capitalized during the period (b) the actual amount of any preferred securities dividend requirements of majority owned subsidiaries (c) preferred stock dividends which were included in such fixed charges amount but not deducted in the determination of pre-tax income.

(B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount and premium expense (c) an estimate of interest implicit in rentals and (d) preferred securities dividend requirements of majority owned subsidiaries and preferred stock dividends, increased to reflect the pre-tax earnings requirement for PSE&G.