EX-12.2 8 ex1202.htm EXHIBIT 12.2 ex1202.htm

EXHIBIT 12.2
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

   
Three Months Ended March 31,
   
Year Ended December 31,
 
   
2007
   
2006
   
2005
   
2004
   
2003
   
2002
 
Earnings:
                                   
Net income
  $
261
    $
985
    $
934
    $
3,982
    $
923
    $
1,819
 
Adjustments for minority interest in losses of less than 100% owned affiliates and the Company's equity in undistributed income (losses) of less than 50% owned affiliates
   
-
     
-
     
-
     
-
     
-
     
-
 
Income tax provision
   
145
     
602
     
574
     
2,561
     
528
     
1,178
 
Net fixed charges
   
220
     
801
     
589
     
671
     
964
     
1,029
 
Total Earnings
  $
626
    $
2,388
    $
2,097
    $
7,214
    $
2,415
    $
4,026
 
                                                 
Fixed Charges:
                                               
Interest on short-term borrowings
and long-term debt, net
  $
207
    $
770
    $
573
    $
682
    $
947
    $
996
 
Interest on capital leases
   
6
     
11
     
1
     
1
     
1
     
2
 
AFUDC debt
   
7
     
20
     
15
      (12 )    
16
     
21
 
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust
   
-
     
-
     
-
     
-
     
-
     
10
 
Total Fixed Charges
   
220
     
801
     
589
     
671
     
964
     
1,029
 
Preferred Stock Dividends:
                                               
Tax deductible dividends
   
3
     
12
     
12
     
9
     
9
     
9
 
Pre-tax earnings required to cover
non-tax deductible preferred stock
dividend requirements
   
-
     
3
     
13
     
34
     
27
     
28
 
Total Preferred Stock Dividends
   
3
     
15
     
25
     
43
     
36
     
37
 
                                                 
Total Combined Fixed Charges
and Preferred Stock Dividends
  $
223
    $
816
    $
614
    $
714
    $
1,000
    $
1,066
 
                                                 
Ratios of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
   
2.81
     
2.93
     
3.42
     
10.10
     
2.42
     
3.78
 
 
Note:

For the purpose of computing Pacific Gas and Electric Company's ratios of earnings to combined fixed charges and preferred stock dividends, "earnings" represent net income adjusted for the minority interest in losses of less than 100% owned affiliates, equity in undistributed income or losses of less than 50% owned affiliates, income taxes and fixed charges (excluding capitalized interest).  "Fixed charges" include interest on long-term debt and short-term borrowings (including a representative portion of rental expense), amortization of bond premium, discount and expense, interest on capital leases, AFUDC debt, and earnings required to cover the preferred stock dividend requirements and preferred security distribution requirements of majority-owned trust.  "Preferred stock dividends" represent tax deductible dividends and pre-tax earnings that are required to pay the dividends on outstanding preferred securities.  Fixed charges exclude interest on FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes) tax liabilities.