exhibit122.htm

PUGET SOUND ENERGY
STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF
EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
	12 Months
	Ended
	September 30,			Years Ended December 31,
	2008			2007			2006			2005			2004			2003
Earnings Available For Fixed Charges:
Pre-tax income:
Income from continuing operations before income taxes	$	245,928		$	265,308		$	275,339		$	233,900		$	200,533		$	185,894
AFUDC - equity		(2,409	)		(1,351	)		(7,978	)		(3,800	)		(2,796	)		(2,272	)
AFUDC - debt		(10,077	)		(12,614	)		(15,874	)		(9,493	)		(5,420	)		(3,343	)
Total	$	233,442		$	251,342		$	251,487		$	220,607		$	192,317		$	180,279
Fixed charges:
Interest expense	$	210,914		$	219,120		$	184,859		$	174,458		$	171,831		$	182,779
Other interest		2,409			1,351			7,978			3,800			2,796			2,272
Portion of rentals representative of the interest factor		10,232			9,199			9,151			5,234			5,424			4,669
Total	$	223,556		$	229,670		$	201,988		$	183,492		$	180,051		$	189,721
Earnings available for combined fixed charges	$	456,998		$	481,012		$	453,475		$	404,099		$	372,368		$	370,000
Ratio of Earnings to Fixed Charges		2.04	x		2.09	x		2.25	x		2.20	x		2.07	x		1.95	x

PUGET SOUND ENERGY
STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in Thousands)

	12 Months
	Ended
	September 30,			Years Ended December 31,
	2008			2007			2006			2005			2004			2003
Earnings Available for Combined Fixed Charges and
Preferred Dividend Requirements:
Pre-tax income:
Income from continuing operations before income taxes	$	245,928		$	265,308		$	275,339		$	233,900		$	200,533		$	185,894
AFUDC - equity		(2,409	)		(1,351	)		(7,978	)		(3,800	)		(2,796	)		(2,272	)
AFUDC - debt		(10,077	)		(12,614	)		(15,874	)		(9,493	)		(5,420	)		(3,343	)
Total	$	233,442		$	251,342		$	251,487		$	220,607		$	192,317		$	180,279
Fixed charges:
Interest expense	$	210,914		$	219,120		$	184,859		$	174,458		$	171,831			182,779
Other interest		2,409			1,351			7,978			3,800			2,796			2,272
Portion of rentals representative of the interest factor		10,232			9,199			9,151			5,234			5,424			4,669
Total	$	223,556		$	229,670		$	201,988		$	183,492		$	180,051		$	189,721
Earnings Available for Combined Fixed Charges and
Preferred Dividend Requirements	$	456,998		$	481,012		$	453,475		$	404,099		$	372,368		$	370,000
Dividend Requirement:
Fixed charges above	$	223,556		$	229,670		$	201,988		$	183,492		$	180,051		$	189,722
Preferred dividend requirements below		-			-			-			-			-			8,333
Total	$	223,556		$	229,670		$	201,988		$	183,492		$	180,051		$	198,055
Ratio of Earnings to Combined Fixed Charges and
Preferred Dividends Requirement		2.04	x		2.09	x		2.25	x		2.20	x		2.07	x		1.87	x

Computation of Preferred Dividend Requirements:

(a) Income from continuing operations before
income taxes	$	245,928		$	265,308		$	275,339		$	233,900		$	200,533		$	185,894
(b) Net income before extraordinary items	$	174,685		$	191,127		$	176,650		$	146,840		$	126,192		$	114,903
(c) Ratio of (a) to (b)		1.4078			1.3881			1.5587			1.5929			1.5891			1.6178
(d) Preferred dividends	$	-		$	-		$	-		$	-		$	-		$	5,151
Preferred dividend requirements [(d) multiplied by (c)]	$	-		$	-		$	-		$	-		$	-		$	8,333