CERTIFICATE OF FORMATION OF PSE&G TRANSITION FUNDING II LLC

                                                                   Exhibit 4.2

                                                        State of Delaware

                                                        Secretary of State

                                                      Division of Corporations

                                                  Delivered 12:19 PM 07/18/2005

                                                    Filed 12:19 PM 07/18/2005

                                                   SRV 0505 90471 -- 4001319 FILE

                           CERTIFICATE OF FORMATION

                                      OF

                       PSE&G TRANSITION FUNDING II LLC

        This Certificate of Formation of PSE&G Transition Funding II LLC (the

"LLC"), dated as of July 18, 2005, is being duly executed and filed by James

T. Foran, as an authorized person, to form a limited liability company under

the Delaware Limited Liability Company Act (6 Del.C. ss.18-101,