Exhibit 12.1
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNING TO FIXED CHARGES AND RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
COMPUTATION OF RATIOS OF EARNING TO FIXED CHARGES AND RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Incoming from continuing operations | $ | 1,113 | $ | 1,234 | $ | 1,198 | $ | 1,020 | $ | 1,005 | ||||||||||
Income taxes provision | 547 | 460 | 425 | 539 | 554 | |||||||||||||||
Fixed charges | 850 | 877 | 907 | 937 | 845 | |||||||||||||||
Pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries | (16 | ) | (16 | ) | (16 | ) | (17 | ) | (15 | ) | ||||||||||
Total Earnings | $ | 2,494 | $ | 2,555 | $ | 2,514 | $ | 2,479 | $ | 2,389 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest and amortization of premiums, discounts and capitalized expenses related to short-term borrowings and long-term debt, net | $ | 766 | $ | 798 | $ | 825 | $ | 865 | $ | 799 | ||||||||||
Interest on capital leases | 18 | 19 | 22 | 23 | 11 | |||||||||||||||
AFUDC related to the cost of debt | 50 | 44 | 44 | 32 | 20 | |||||||||||||||
Pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries | 16 | 16 | 16 | 17 | 15 | |||||||||||||||
Total Fixed Charges | $ | 850 | $ | 877 | $ | 907 | $ | 937 | $ | 845 | ||||||||||
Ratios of Earnings to Fixed Charges | 2.93 | 2.91 | 2.77 | 2.65 | 2.83 | |||||||||||||||
Total Preferred Stock Dividends | — | — | — | — | — | |||||||||||||||
Total Combined Fixed Charges and Preferred Stock Dividends | $ | 850 | $ | 877 | $ | 907 | $ | 937 | $ | 845 | ||||||||||
Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends | 2.93 | 2.91 | 2.77 | 2.65 | 2.83 | |||||||||||||||
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 dividends 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 related to the cost of debt, and earnings required to cover the preferred stock dividends of consolidated subsidiaries. Fixed charges exclude interest on tax liabilities. Currently, PG&E Corporation does not have any shares of preferred stock outstanding.