CALCULATION OF REGISTRATION FEE
| Title of Each Class of Securities Offered | Maximum Aggregate Offering Price | Amount of Registration
Fee(1) |
| 3.250% Secured Medium-Term Notes, Series M, due September 1, 2023 | $325,000,000 | $40,462.50 |
(1) The filing fee of $40,462.50 is calculated in accordance with Rule 457(r) under the Securities Act of 1933 and relates to the Registration Statement on Form S-3 (No. 333-221639) filed by Public Service Electric and Gas Company on November 17, 2017.
Filed Pursuant to Rule 424(b)(5)
Registration Statement No. 333-221639
PricingSupplementtoProspectusSupplementDatedMay2,2018 andProspectusDatedNovember17,2017
Pricing SupplementdatedSeptember 5,2018
(ToProspectusSupplementdatedMay2,2018
andProspectusdatedNovember17,2017)
3.250%SecuredMedium-TermNotes,Series M,dueSeptember1,2023
PUBLIC SERVICE ELECTRICANDGASCOMPANY(PSE&G)
CUSIP: 74456QBW5
Trade Date:September 5,2018
Original IssueDate/SettlementDate:September 7,2018
Principal Amount:$325,000,000
Price toPublic: 99.823%ofPrincipalAmount,plusaccrued interestfromSeptember 7,2018 ifsettlementoccurs afterthatdate
Purchase Price: 99.323%ofPrincipalAmount
Net ProceedstoCompany: $322,799,750
Interest Rate: 3.250%perannum
Initial InterestAccrualDate:September 7,2018
InterestPaymentDates:March1andSeptember1, commencingMarch1,2019
Regular RecordDates:February15andAugust15
Maturity Date:September1,2023
These NotesareDTCEligibleandwillbeissuedin book-entryform.
ModeofDistribution:[X]Underwritten[]Agented
[X]AcademySecurities,Inc. ($9,750,000)
[]BarclaysCapitalInc.
[]BNPParibasSecuritiesCorp.
[]BNYMellonCapitalMarkets,LLC
[X]CIBCWorldMarketsCorp. ($52,000,000)
[]CitigroupGlobalMarketsInc.
[X]CreditSuisseSecurities(USA)LLC ($39,000,000)
[]GoldmanSachs&Co.LLC
[]J.P. MorganSecuritiesLLC
[X]LoopCapitalMarketsLLC ($9,750,000)
[X]MerrillLynch,Pierce,Fenner&Smith
Incorporated ($39,000,000)
[]MizuhoSecuritiesUSALLC
[]MorganStanley&Co.LLC
[X]MUFGSecuritiesAmericasInc. ($52,000,000)
[]RBCCapitalMarkets,LLC
[X]ScotiaCapital(USA) Inc. ($52,000,000)
[]TDSecurities(USA)LLC
[X]U.S.BancorpInvestments,Inc. ($19,500,000)
[X]WellsFargoSecurities,LLC ($52,000,000)
Redemption Provisions:
The SecuredMedium-TermNotes,Series Moffered hereby(the“SecuredMedium-TermNotes”)willbesubjectto redemptionasdescribedintheprospectusandprospectussupplement.
Additionally, theSecuredMedium-Term NoteswillbesubjecttoredemptionatanytimepriortoAugust1,2023(the datethatisonemonthpriortotheMaturityDate)(the“Make WholeRedemptionPeriod”)onnotlessthan30 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%oftheprincipalamountoftheSecuredMedium-TermNotestoberedeemedand(ii) thesumofthepresentvalues of the remaining scheduled payments of principal and interest thatwould be due if such Secured Medium-Term Notesmatured onAugust1,2023(exclusive ofaccruedinteresttotheredemptiondate)discountedtotheredemptiondate onasemi-annualbasis(assuminga360-dayyearconsistingoftwelve30-daymonths)attheTreasuryRateplus10 basis points(0.100%),plus,ineithercase,accruedinterestthereontothedateofredemption.
At anytimeonorafterAugust1,2023(thedatethatisonemonthpriortotheMaturityDate),theSecured Medium-TermNoteswillbesubjecttoredemptiononnotlessthan30 days’priorwrittennoticetoholders,eitherasa whole or in part, at the option of PSE&G, at a redemption price equal to 100% of the principal amount of the Secured Medium-Term Notestoberedeemed,plusaccruedinterestthereontothedateofredemption.
“Treasury Rate”means,withrespecttoany redemptiondateduringtheMakeWholeRedemptionPeriod,therateper annumequaltothesemi-annualequivalentyieldtomaturityoftheComparableTreasury Issue,assumingapriceforthe ComparableTreasury Issue(expressedasapercentageofitsprincipalamount)equaltotheComparableTreasuryPrice forsuchredemptiondate.
“ComparableTreasuryIssue”meanstheUnitedStatesTreasurysecurityselectedbyanIndependentInvestment Banker as having a maturity comparable to the remaining term of the Secured Medium-Term Notes to be redeemed (assuming that the Secured Medium-Term Notes matured on August 1, 2023) thatwould be utilized, at the time of selection and in accordance with customaryfinancial practice, in pricing new issues of corporate debt securities of comparablematuritytosuchremainingtermoftheSecuredMedium-Term Notestoberedeemed.
“ComparableTreasuryPrice”means,withrespecttoanyredemptiondateduringtheMake WholeRedemption Period,(i) theaverage ofthreeReferenceTreasuryDealerQuotationsforsuchredemptiondate,afterexcludingthe highestandlowestoffive ReferenceTreasuryDealerQuotations,or(ii) iftheTrustee isunabletoobtainfive ReferenceTreasuryDealerQuotations,theaverage ofallReferenceTreasuryDealerQuotationssoobtained.
“Independent InvestmentBanker”meansoneoftheReferenceTreasuryDealersappointedbyPSE&Gand acceptabletotheTrustee.
“ReferenceTreasuryDealer”meansaprimaryU.S. GovernmentSecuritiesDealerintheUnitedStates(a“PrimaryTreasuryDealer”) selectedbyPSE&GandacceptabletotheTrustee.
“ReferenceTreasuryDealerQuotations”means,withrespecttoeachReferenceTreasuryDealerandany redemption dateduringtheMake WholeRedemptionPeriod,theaverage, asdeterminedbytheTrustee,ofthebidandaskedprices fortheComparableTreasuryIssue(expressed,ineachcase,asapercentageofitsprincipalamount)quotedinwritingto theTrusteebysuchReferenceTreasuryDealeratorbefore5:00 p.m.,NewYorkCitytime,onthethirdbusiness day precedingsuchredemptiondate.
Use ofProceeds:
Weexpect to use a portion of the net proceeds from the sale of the Secured Medium-Term Notes and the concurrent offeringof $325.0 millionaggregate principalamountof 3.650%SecuredMedium-Term Notes,SeriesM,dueSeptember1,2028,torepayatmaturity$350millionofour2.300%SecuredMedium-TermNotes,SeriesI,dueSeptember15,2018,includingaccruedandunpaidinterestthereon.
The remaining net proceeds from this offering and the concurrent offering will be used for general corporate purposes.
No PRIIPsKID:
No PRIIPskey informationdocument(KID)hasbeenpreparedasnotavailable toretailintheEEA.
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