EX-12.03 6 exhibit1203.htm PG&E CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.03
 
EXHIBIT 12.3
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

   
Year Ended December 31,
(in millions)
  
2017
    
2016
    
2015
    
2014
    
2013
Earnings:
                            
Net income
  
$
1,660
    
$
1,407
    
$
888
    
$
1,450
    
$
828
Income tax provision (benefit)
    
511
      
55
      
(27)
 
    
345
      
268
Fixed charges
    
1,598
      
1,440
      
1,284
      
1,206
      
1,012
Pre-tax earnings required to cover
                                      
the preferred stock dividend of
                                      
consolidated subsidiaries
    
(15)
 
    
(14)
 
    
(14)
 
    
(15)
 
    
(16)
Total earnings
  
$
3,754
    
$
2,888
    
$
2,131
    
$
2,986
    
$
2,092
Fixed charges:
                                      
Interest on short-term
                                      
borrowings and long-term
                                      
debt, net
  
$
1,543
    
$
1,372
    
$
1,218
    
$
1,140
    
$
942
Interest on capital leases
    
2
      
3
      
4
      
6
      
7
AFUDC debt
    
38
      
51
      
48
      
45
      
47
Pre-tax earnings required to cover
                                      
 the preferred stock dividend of
                                      
consolidated subsidiaries
    
15
      
14
      
14
      
15
      
16
Total fixed charges
  
$
1,598
    
$
1,440
    
$
1,284
    
$
1,206
    
$
1,012
Ratios of earnings to fixed charges
    
2.35
      
2.01
      
1.66
      
2.48
      
2.07

Note:
For the purpose of computing PG&E Corporation's ratios of earnings to fixed charges, "earnings" represent income from continuing operations adjusted for income taxes, fixed charges (excluding capitalized interest), and pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries.  "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 on capital leases, AFUDC debt, and earnings required to cover preferred stock dividends of consolidated subsidiaries.  Fixed charges exclude interest on tax liabilities.