EXHIBIT 12.1

                        PACIFIC GAS AND ELECTRIC COMPANY
                             A DEBTOR-IN-POSSESSION
               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES



                                                                  YEAR ENDED DECEMBER 31,
                                                                  -----------------------
(in millions)                                2003         2002         2001         2000          1999
                                             ----         ----         ----         ----          ----
                                                                                 
EARNINGS:
Net income (loss)                          $   923      $ 1,819      $ 1,015      $(3,483)      $   788
Income taxes provision (benefit)               528        1,178          596       (2,154)          648
Net fixed charges                              964        1,029        1,019          648           637
                                           -------      -------      -------      -------       -------
TOTAL EARNINGS (LOSS)                      $ 2,415      $ 4,026      $ 2,630      $(4,989)      $ 2,073
                                           =======      =======      =======      =======       =======
FIXED CHARGES:
Interest on short-term borrowings
  and long-term debt, net                  $   947      $   996      $   981      $   616       $   604
Interest on capital leases                       1            2            2            2             3
AFUDC debt                                      16           21           12            6             7
Earnings required to cover the
  preferred stock dividend and
  preferred security distribution
  requirements of majority owned
  trust                                         --           10           24           24            24
                                           -------      -------      -------      -------       -------
TOTAL FIXED CHARGES                        $   964      $ 1,029      $ 1,019      $   648       $   638
                                           =======      =======      =======      =======       =======
RATIOS OF EARNINGS (LOSS) TO
  FIXED CHARGES                               2.51         3.91         2.58      (7.70)(1)        3.25
                                           =======      =======      =======      =======       =======

Note:

For the purpose of computing Pacific Gas and Electric Company's ratios of
earnings to fixed charges, "earnings" represent net income adjusted for the
minority interest in losses of less than 100% owned affiliates, cash
distributions from and equity in undistributed income or loss of Pacific Gas and
Electric Company's 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 of
subordinated debentures held by trust, interest on capital leases, and earnings
required to cover the preferred stock dividend requirements and preferred
security distribution requirements of majority-owned trust.

(1)   The ratio of earnings to fixed charges indicates a deficiency of less than
      one-to-one coverage aggregating $5,637 million for the year ended December
      31, 2000.