EX-12.1 6 q205_ex12-1.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)

   2005

   2005

 2004

  2003

  2002

  2001

    2000

Earnings (1)

Pre-tax income (loss) from continuing operations

$

442 

$

808 

$

6,543 

$

1,451 

$

2,997 

$

1,611 

$

(5,637)

Add:

Fixed Charges

132 

294 

671 

964 

1,029 

1,019 

648 

Less:

Preferred dividend requirements of subsidiaries

- 

- 

- 

- 

- 

- 

- 

Total Earnings (Loss)

$

574 

$

1,102 

$

7,214 

$

2,415 

$

4,026 

$

2,630 

$

(4,989)

Fixed Charges (2)

Interest expense, net, including amortization of

   debt issue costs, premiums and discounts

$

124 

$

279 

$

668 

$

939 

$

990 

$

976 

$

609 

AFUDC Debt

4 

7 

(12)

16 

21 

12 

6 

Estimate of interest expense within rents

4 

8 

15 

9 

8 

7 

9 

Preferred dividend requirements of subsidiaries

- 

- 

- 

- 

- 

- 

- 

Preferred security requirements of wholly-owned trust

- 

- 

- 

- 

10 

24 

24 

Total Fixed Charges

$

132 

$

294 

$

671 

$

964 

$

1,029 

$

1,019 

$

648 

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

4.35 

3.75 

10.75 

2.51 

3.91 

2.58

(7.70)

(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.