<Page>
EXHIBIT 12b
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PLUS PREFERRED SECURITY DIVIDEND REQUIREMENTS
For the Year Ended December 31,
---------------------------------------
2003 2002 2001 2000 1999
----- ----- ----- ------ ------
Earnings as Defined in Regulation S-K (A):
Pre-Tax Income from Continuing Operations $ 376 $ 320 $ 324 $ 994 $1,163
Fixed Charges 397 415 469 462 457
Preferred Securities Pre Tax (7) (7) (8) (15) (15)
----- ----- ----- ------ ------
Earnings $ 766 $ 728 $ 785 $1,441 $1,605
===== ===== ===== ====== ======
Fixed Charges as Defined in Regulation S-K (B)
Interest Expense $ 390 $ 406 $ 458 $ 444 $ 440
Interest Factor in Rentals -- 2 3 3 2
Preferred Securities Dividends 4 4 5 9 9
Adjustment to state Preferred Securities
Dividends on a pre-income tax basis 3 3 3 6 6
----- ----- ----- ------ ------
Total Fixed Charges $ 397 $ 415 $ 469 $ 462 $ 457
===== ===== ===== ====== ======
Ratio of Earnings to Fixed Charges 1.93 1.75 1.67 3.12 3.51
===== ===== ===== ====== ======
(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.