EX-12.3 8 q104exhibit12_3.htm EXHIBIT 12.3 Exhibit 12

Exhibit 12.3

PG&E Corporation

Ratios of Earnings to Fixed Charges

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

$

5,109 

$

1,249 

$

2,860 

$

1,629 

$

(5,543)

$

1,368 

Add:

Fixed Charges

256 

1,186 

1,282 

1,141 

696 

673 

Less:

Pre-tax earnings required to cover preferred
   dividend requirement of subsidiaries

22 

22 

25 

25 

25 

25 

Earnings

$

5,343 

$

2,413 

$

4,117 

$

2,745 

$

(4,872)

$

2,016 

Fixed Charges (2)

Interest expense, net, including amortization of

   debt issue costs, premiums and discounts

$

228 

$

1,147 

$

1,224 

$

1,078 

$

639 

$

615 

AFUDC Debt

16 

21 

12 

Estimate of interest expense within rents

Preferred dividend requirements of subsidiaries

22 

22 

25 

25 

25 

25 

Preferred security requirements of wholly-owned trust

10 

24 

24 

24 

Fixed Charges

$

256 

$

1,186 

$

1,282 

$

1,141 

$

696 

$

673 

Ratio of Earnings to Fixed Charges (3)

20.9 

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.