EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES


                           Nine months                      Year ended December 31,
                              ended         -------------------------------------------------------
(dollars in millions)     September 30, 2000  1999        1998        1997        1996        1995
---------------------------------------------------------------------------------------------------
                                                                         

Earnings:
  Net income                  $   673       $   788     $  729      $   768     $   755     $ 1,339
Adjustments for minority
    interests in losses of
    less than 100% owned
    affiliates and the
    Company's equity in
    undistributed losses
    (income) of less than
    50% owned affiliates            -             -           -           -           3           4
Income tax expense                594           648         629         609         555         895
  Net fixed charges               465           637         673         628         683         716
                              --------      --------    --------    --------    --------    --------
      Total Earnings          $  1,732       $ 2,073     $ 2,031     $ 2,005     $ 1,996     $ 2,954
                              ========      ========    ========    ========    ========    ========
Fixed Charges:
  Interest on long-
    term debt, net            $   375       $   523     $   585     $   485     $   574     $   616
  Interest on short-
    term borrowings                66            81          50         101          75          83
  Interest on capital leases        1             2           2           2           3           3
  AFUDC debt                        5             8          12          17           8          11
Earnings required to
    cover the preferred stock
    dividend and preferred
    security distribution
    requirements of majority
    owned trust                    18            24          24          24          24           3
                              --------      --------    --------    --------    --------    --------
      Total Fixed Charges     $   465       $   638     $   673     $   629     $   684     $   716
                              ========      ========    ========    ========    ========    ========
Ratios of Earnings to
  Fixed Charges                  3.72          3.25        3.02        3.19        2.92        4.13

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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.