February 7, 2003

Public Service Electric and Gas Company
80 Park Plaza
Newark, New Jersey 07102

We have audited the financial statements of Public Service Electric and Gas
Company and its subsidiaries as of December 31, 2002 and 2001, and for each of
the three years in the period ended December 31, 2002, included in your Annual
Report on Form 10-K to the Securities and Exchange Commission and have issued
our report thereon dated February 7, 2003, which expresses an unqualified
opinion. Note 3 to such financial statements contains a description of your
adoption, during the year ended December 31, 2002, of a change in the method of
accounting to present certain energy trading contract assets and liabilities on
a net basis where the legal right of offset exists. In our judgment, such change
is to an alternative accounting principle that is preferable under the
circumstances.

Yours truly,

Deloitte & Touche LLP
Parsippany, New Jersey