EX-12.2 7 q104exhibit12_2.htm EXHIBIT 12.2 Exhibit 12

Exhibit 12.2

Pacific Gas and Electric Company

Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends

Three Months Ended
March 31,

Year Ended December 31,

(dollars in millions)

2004

2003

2002

2001

2000

1999

Earnings (1)

Pre-tax income (loss) from continuing operations

$

5,173 

$

1,451 

$

2,997 

$

1,611 

$

(5,637)

$

1,436 

Add:

Fixed Charges

220 

964 

1,029 

1,019 

648 

637 

Less:

Preferred dividend requirements of subsidiaries

- 

- 

- 

- 

- 

- 

Total Earnings (Loss)

$

5,393 

$

2,415 

$

4,026 

$

2,630 

$

(4,989)

$

2,073 

Fixed Charges (2)

Interest expense, net, including amortization of

   debt issue costs, premiums and discounts

$

210 

$

939 

$

990 

$

976 

$

609 

$

595 

AFUDC Debt

5 

16 

21 

12 

6 

7 

Estimate of interest expense within rents

5 

9 

8 

7 

9 

11 

Preferred dividend requirements of subsidiaries

- 

- 

- 

- 

- 

- 

Preferred security requirements of wholly-owned trust

- 

- 

10 

24 

24 

24 

Total Fixed Charges

$

220 

$

964 

$

1,029 

$

1,019 

$

648 

$

637 

Preferred Stock Dividends

Tax deductible dividends

$

2 

$

9

$

9 

$

9 

$

9 

$

9 

Pre-tax earnings required to cover non-tax
   deductible preferred stock dividend requirements

15 

27 

28 

27 

27 

27 

Total Preferred Stock Dividends

$

17 

$

36 

$

37 

$

36 

$

36 

$

36 

Total Fixed Charges and Preferred Stock    Dividends

$

237 

$

1,000 

$

1,066 

$

1,055 

$

684 

$

673 

Ratio of Earnings (Loss) to Combined Fixed Charges    and Preferred Stock Dividends (3)

22.76 

2.42 

3.78 

2.49 

(7.29)

3.08 

(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.