EX-12.1 12 utilityex12-1.htm COMPUTATION OF EARNINGS TO FIXED CHARGES FOR PG&E

EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-POSSESSION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Three
months
ended
June 30,

Six
months
ended
June 30,




Year ended December 31,

(in millions)

2003

  

2003

  

2002

  

2001

  

2000

  

1999

  

1998

                           

Earnings:

                          

Net income (loss)

$

345 

  

$

272 

  

$

1,819 

  

$

1,015 

  

$

(3,483)

  

$

788 

  

$

729 

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 taxes provision (benefit)

209 

  

125 

  

1,178 

  

596 

  

(2,154)

  

648 

  

629 

Net fixed charges

230 

  

458 

  

1,029 

  

1,019 

  

648 

  

637 

  

673 

Total Earnings (Loss)

$

784 

  

$

855 

  

$

4,026 

  

$

2,630 

  

$

(4,989)

  

$

2,073 

  

$

2,031 

Fixed Charges:

                          

Interest on short-term borrowings
  and long-term debt, net

$

226 

  

$

448 

  

$

996 

  

$

981 

  

$

616 

  

$

604 

  

$

635 

Interest on capital leases

- 

  

1 

  

2 

  

2 

  

2 

  

3 

  

2 

AFUDC debt

4 

  

9 

  

21 

  

12 

  

6 

  

7 

  

12 

Earnings required to cover the
  preferred stock dividend and
  preferred security distribution
  requirements of majority owned
  trust





- 

  

- 









10 









24 









24 









24 









24 

Total Fixed Charges

$

230 

  

$

458 

  

$

1,029 

  

$

1,019 

  

$

648 

  

$

638 

  

$

673 

Ratios of Earnings (Loss) to
  Fixed Charges


3.41 

  


1.87 

  


3.91 

  


2.58 

  

(7.70)

(1)

3.25 

  


3.02 

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.

(1) The ratio of earnings to fixed charges indicates a deficiency of less than one-to-one coverage aggregating $5,637 million.