EX-12.1 6 q204exhibit12_1.htm EXHIBIT 12.1 Exhibit 12

Exhibit 12.1
Pacific Gas and Electric Company
Computation of Ratios of Earnings to Fixed Charges

Three months
ended
June 30,

Six
months
ended
June 30,

Year ended December 31,

(dollars in millions)

2004

2004

2003

2002

2001

2000

1999

Earnings (1)

Pre-tax income (loss) from
  continuing operations

$

571 

$

5,744 

$

1,451 

$

2,997 

$

1,611 

$

(5,637)

$

1,436 

Add:

Fixed Charges

164 

388 

964 

1,029 

1,019 

648 

637 

Less:

Preferred dividend requirements of
  subsidiaries

- 

- 

- 

- 

- 

- 

- 

Total Earnings (Loss)

$

735 

$

6,132 

$

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

$

158 

$

373 

$

939 

$

990 

$

976 

$

609 

$

595 

AFUDC Debt

2 

8 

16 

21 

12 

6 

7 

Estimate of interest expense
  within rents

4 

7 

9 

8 

7 

9 

11 

Preferred dividend requirements
  of subsidiaries

- 

- 

- 

- 

- 

- 

- 

Preferred security requirements of
  wholly-owned trust

- 

- 

- 

10 

24 

24 

24 

Total Fixed Charges

$

164 

$

388 

$

964 

$

1,029 

$

1,019 

$

648 

$

637 

Ratio of Earnings (Loss) to Fixed
   Charges (3)

4.48 

15.80 

2.51 

3.91 

2.58 

(7.70)

3.25

(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.