EXHIBIT 12.1

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Year ended December 31,
		2006		2005		2004			2003		2002
Earnings:
Net income	$	985	$	934	$	3,982		$	923	$	1,819
Adjustments for minority interest in losses of less than 100% owned affiliates and the Company's equity in undistributed income (losses) of less than 50% owned affiliates		-		-		-			-		-
Income taxes provision		602		574		2,561			528		1,178
Net fixed charges		801		589		671			964		1,029
Total Earnings	$	2,388	$	2,097	$	7,214		$	2,415	$	4,026
Fixed Charges:
Interest on short-term borrowings and long-term debt, net	$	770	$	573	$	682		$	947	$	996
Interest on capital leases		11		1		1			1		2
AFUDC debt		20		15		(12	)		16		21
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust		-		-		-			-		10
Total Fixed Charges	$	801	$	589	$	671		$	964	$	1,029
Ratios of Earnings to Fixed Charges		2.98		3.56		10.75			2.51		3.91

Note:

For the purpose of computing Pacific Gas and Electric Company's ratios of earnings to fixed charges, "earnings" represent net income adjusted for the minority interest in losses of less than 100% owned affiliates, equity in undistributed income or losses of less than 50% owned affiliates, income taxes and fixed charges (excluding capitalized interest). "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 the preferred stock dividend requirements and preferred security distribution requirements of majority-owned trust.