EX-12.01 5 exhibit121-063018.htm EXHIBIT 12.01 Exhibit


EXHIBIT 12.1

EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(in millions)
 
Six Months Ended
June 30,
 
Year Ended December 31,
Earnings:
 
2018
 
2017
 
2016
 
2015
 
2014
 
2013
Net income
 
$
(524
)
 
$
1,691

 
$
1,402

 
$
862

 
$
1,433

 
$
866

Income tax provision (benefit)
 
(544
)
 
427

 
70

 
(19
)
 
384

 
326

Fixed charges
 
757

 
1,572

 
1,417

 
1,260

 
1,176

 
971

Total earnings
 
$
(311
)
 
$
3,690

 
$
2,889

 
$
2,103

 
$
2,993

 
$
2,163

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest on short-term borrowings and long-term debt, net
 
$
732

 
$
1,532

 
$
1,363

 
$
1,208

 
$
1,125

 
$
917

Interest on capital leases
 
—

 
2

 
3

 
4

 
6

 
7

AFUDC debt
 
25

 
38

 
51

 
48

 
45

 
47

Total fixed charges
 
$
757

 
$
1,572

 
$
1,417

 
$
1,260

 
$
1,176

 
$
971

Ratios of earnings to fixed charges (1)
 
(0.41
)
 
2.35

 
2.04

 
1.67

 
2.55

 
2.23

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The ratio of earnings to fixed charges indicates that an additional $1.1 billion of earnings would be required to reach a one-to-one ratio for the six months ended June 30, 2018.

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 income or loss from equity investees 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.  Fixed charges exclude interest on tax liabilities.