PG&E (PCG) 10-Q 2015 Q1 Quarterly report

EXHIBIT 12.1

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

		Three Months Ended March 31,			Year Ended December 31,
(in millions)		2015			2014		2013		2012		2011		2010
Earnings:
Net income	$	4		$	1,433	$	866	$	811	$	845	$	1,121
Income tax provision (benefit)		(92)			384		326		298		480		574
Fixed charges		249			1,176		971		891		880		799
Total earnings	$	161		$	2,993	$	2,163	$	2,000	$	2,205	$	2,494
Fixed charges:
Interest on short-term borrowings
and long-term debt, net	$	235		$	1,125	$	917	$	834	$	824	$	731
Interest on capital leases		1			6		7		9		16		18
AFUDC debt		13			45		47		48		40		50
Total fixed charges	$	249		$	1,176	$	971	$	891	$	880	$	799
Ratios of earnings to fixed charges		0.65	(1)		2.55		2.23		2.24		2.51		3.12

(1) The ratio of earnings to fixed charges indicates that an additional $88 million of earnings would be required to reach a one-to-one ratio.

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.