Exhibit 12.1

PUGET ENERGY, INC.
STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF
EARNINGS TO COMBINED FIXED CHARGES AND DIVIDEND REQUIREMENTS
(Dollars in Thousands)

 
 
EARNINGS AVAILABLE FOR COMBINED FIXED 12 Months
Ending
June  
 
Year Ended December 31

CHARGES AND PREFERRED DIVIDEND
REQUIREMENTS 2002 2001 2000 1999 1998 1997

Pre-tax Income:

  Net income per statement of income 72,923  121,587  193,831  185,567  169,612  125,698 

  Federal income taxes 45,214  78,006  128,973  109,164  105,814  44,916 

  Federal income taxes charged to
    other income-net
5,116 
4,590 
1,411 
2,909 
3,986 
14,807 

Subtotal 123,253  204,183  324,215  297,640  279,412  185,421 

  Capitalized Interest (1,198) (883) (1,264) (3,692) (1,782) (360)

  Undistributed (earnings) or losses
    of less-than-fify-percent-owned
    entities

0 

0 

0 

0 

0 

(680)

Total 122,055  203,300  322,951  293,948  277,630  184,453 

Fixed Charges:

  Interest on long-term debt 197,926  194,505  184,405  160,966  146,248  123,543 

  Other interest 1,198  883  1,264  3,692  1,782  360 

  Portion of rentals representative of
    the interest factor
8,207 
7,379 
5,002 
4,575 
2,878 
3,143 

Total 207,331  202,767  190,671  169,233  150,908  127,046 

Earnings Available for combined Fixed Charges
and Preferred Dividend requirements
329,386 
406,067 
513,622 
463,181 
428,538 
311,499 

Ratio of earnings to fixed charges 1.59  2.00  2.69  2.74  2.84  2.45 

COMBINED FIXED CHARGES AND PREFERRED
DIVIDEND REQUIREMENTS:

  Fixed charges above 207,311  202,767  190,671  160,233  150,908  127,046 

  Preferred dividend requirements below 13,728  14,128  15,044  17,747  21,421  26,266 

Total 221,059  216,895  205,715  186,980  172,329  153,312 

Ratio of earnings to combined fixed charges
and preferred dividend requirements
1.49 
1.87 
2.50 
2.48 
2.49 
2.03 

COMPUTATION OF PREFERRED DIVIDEND
REQUIREMENTS:

  (a) Pre-tax income 123,253  204,183  324,215  297,640  279,412  185,421 

  (b) Net income 72,923  121,587  193,831  185,567  169,612  125,698 

  (c) Ratio of (a) to (b) 1.6902  1.6793  1.6727  1.6039  1.6474  1.4751 

  (d) Preferred dividends 8,122  8,413  8,994  11,065  13,003  17,806 

Preferred dividend requirements

  [(d) multiplied by (c)] 13,728  14,128  15,044  17,747  21,421  26,266