EX-12.03 4 exhibit12-3.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES FOR PG&E CORPORATION exhibit12-3.htm
EXHIBIT 12.3
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

   
Year Ended December 31,
 
   
2014
   
2013
   
2012
   
2011
   
2010
 
Earnings:
                             
Net income
  $ 1,450     $ 828     $ 830     $ 858     $ 1,113  
Income tax provision
    345       268       237       440       547  
Fixed charges
    1,206       1,012       931       919       850  
Pre-tax earnings required to cover the
                                       
preferred stock dividend of consolidated
                                       
subsidiaries
    (15 )     (16 )     (15 )     (17 )     (16 )
Total earnings
  $ 2,986     $ 2,092     $ 1,983     $ 2,200     $ 2,494  
Fixed charges:
                                       
Interest on short-term borrowings and
                                       
long-term debt, net
  $ 1,140     $ 942     $ 859     $ 846     $ 766  
Interest on capital leases
    6       7       9       16       18  
AFUDC debt
    45       47       48       40       50  
Pre-tax earnings required to cover the
                                       
preferred stock dividend of consolidated
    15       16       15       17       16  
Total fixed charges
  $ 1,206     $ 1,012     $ 931     $ 919     $ 850  
Ratios of earnings to fixed charges
    2.48       2.07       2.13       2.39       2.93  

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 liabili