EX-12.2 14 f95893aexv12w2.txt EXHIBIT 12.2 EXHIBIT 12.2 PACIFIC GAS AND ELECTRIC COMPANY A DEBTOR-IN-POSSESSION COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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 ------- ------- ------- ------- ------- PREFERRED STOCK DIVIDENDS: Tax deductible dividends 9 9 9 9 9 Pretax earnings required to cover non-tax deductible preferred stock dividend requirements 27 28 27 27 27 ------- ------- ------- ------- ------- TOTAL PREFERRED STOCK DIVIDENDS 36 37 36 36 36 ------- ------- ------- ------- ------- TOTAL COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS $ 1,000 $ 1,066 $ 1,055 $ 684 $ 674 ======= ======= ======= ======= ======= RATIOS OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 2.42 3.78 2.49 (7.29)(1) 3.08 ======= ======= ======= ======= ======= 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, 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 on capital leases, interest of subordinated debentures held by trust, and earnings required to cover the preferred stock dividend requirements and preferred security distribution requirements of majority-owned trust. "Preferred stock dividends" represent pretax earnings that are required to pay the dividends on outstanding preferred securities. (1) The ratio of earnings to combined fixed charges and preferred stock dividends indicates a deficiency of less than one-to-one coverage aggregating $5,673 million for the year ended December 31, 2000.