EX-12.1 5 f97982exv12w1.htm EXHIBIT 12.1 exv12w1
 

Exhibit 12.1

PG&E Corporation
Ratio of Earnings to Fixed Charges

                                                 
    Pro-Forma                    
    2003
   2003
   2002
   2001
   2000
   1999
Earnings (1)
                                               
Pre-tax income from continuing operations
   $ 668     $ 1,249     $ 2,860     $ 1,629     $ (5,543 )   $ 1,368  
add:
                                                
Fixed Charges
     758       1,196       1,296       1,141       696       673  
less:
                                                
Pre-tax earnings required to cover preferred dividend requirement of subsidiaries
     22       22       25       25       25       25  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Earnings
   $ 1,404     $ 2,423     $ 4,131     $ 2,745     $ (4,872 )   $ 2,016  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Fixed Charges (2)
                                               
Interest expense, net, including amortization of debt issue costs, premiums and discounts
     719       1,147       1,224       1,078       639       615  
AFUDC Debt
     16       16       21       12       6       7  
Estimate of interest expense within rents
     1       1       2       2       2       2  
Preferred dividend requirements of subsidiaries
     22       22       25       25       25       25  
Preferred security requirements of wholly-owned trust
     —       10       24       24       24       24  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Fixed Charges
   $ 758     $ 1,196     $ 1,296     $ 1,141     $ 696     $ 673  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Ratio of Earnings to Fixed Charges (3)
    1.9       2.0       3.2       2.4       (7.0 )     3.0  
 
    
 		      
 		      
 		      
 		      
 		      
 		  

(1)   For purposes of computing the ratio of earnings to fixed charges, “earnings” represents pre-tax income from continuing operations adjusted for minority interest in consolidated subsidiaries and equity in income or loss from subsidiaries accounted for using the equity method plus fixed charges, as computed, less the pre-tax earnings required to cover the preferred dividend requirements of subsidiaries.
 
(2)   “Fixed charges” include interest, including amortization of debt issue costs, premiums and discounts, the debt portion of the allowance for funds used during construction, an estimate of the amount of interest within rents, and the preferred security requirements of consolidated subsidiaries.
 
(3)   The ratio of earnings to fixed charges for the year 2000 indicates a ratio of less than one-to-one. The dollar amount of the deficiency is approximately $5.6 billion.