CALCULATION OF REGISTRATION FEE
| Title of Each Class of Securities Offered | Maximum Aggregate Offering Price | Amount of Registration Fee(1) |
| 3.650% Secured Medium-Term Notes, Series M, due September 1, 2028 | $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)
3.650%SecuredMedium-TermNotes,Series M,dueSeptember1,2028
PUBLICSERVICEELECTRICANDGASCOMPANY(PSE&G)
CUSIP: 74456QBX3
Trade Date:September 5,2018
Original IssueDate/SettlementDate:September 7,2018
Principal Amount:$325,000,000
Price toPublic: 99.984%ofPrincipalAmount,plusaccrued interestfromSeptember 7, 2018ifsettlementoccurs afterthatdate
Purchase Price: 99.384%ofPrincipalAmount
Net ProceedstoCompany: $322,998,000
InterestRate: 3.650%perannum
Initial InterestAccrualDate:September 7,2018
InterestPaymentDates:March1andSeptember1, commencingMarch1,2019
Regular RecordDates:February15andAugust15
Maturity Date:September1,2028
These NotesareDTCEligibleandwillbeissuedin book-entry form.
Mode ofDistribution:[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
[]Morgan Stanley&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, the Secured Medium-Term Notes will be subject to redemption at any time prior to June 1, 2028 (the datethatis threemonthspriortotheMaturityDate)(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 greaterof(i)100%oftheprincipalamountoftheSecuredMedium-TermNotestoberedeemedand(ii) thesumofthe presentvalues oftheremainingscheduledpaymentsofprincipalandinterestthatwouldbedueifsuchSecured Medium-Term Notes matured on June 1, 2028 (exclusive of accrued interest to the redemption date) discounted to the redemptiondateonasemi-annualbasis(assuminga360-dayyearconsistingoftwelve30-daymonths)attheTreasury Rateplus 12.5 basispoints(0.125%),plus,ineithercase,accruedinterestthereontothedateofredemption.
At anytimeonorafterJune1,2028(thedatethatisthreemonthspriortotheMaturityDate),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 (assumingthattheSecuredMedium-TermNotesmaturedonJune1,2028)thatwouldbeutilized,atthetimeofselection and in accordance with customaryfinancial practice, in pricing new issues of corporate debt securities of comparable maturitytosuchremainingtermoftheSecuredMedium-TermNotestoberedeemed.
“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“PrimaryTreasury Dealer”)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 3.250%Secured Medium-Term Notes,Series M,dueSeptember1,2023,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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