PG&E (PCG) 10-K 2011 FY Annual report

EXHIBIT 12.1

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Year ended December 31,
	2011		2010		2009		2008		2007
Earnings:
Net income		$ 845		$ 1,121		$ 1,250		$ 1,199		$ 1,024
Income taxes provision		480		574		482		488		571
Net fixed charges		880		799		817		860		889
Total Earnings		$ 2,205		$ 2,494		$ 2,549		$ 2,547		$ 2,484
Fixed Charges:
Interest on short-term borrowings and long-term debt, net		$ 824		$ 731		$ 754		$ 794		$ 834
Interest on capital leases		16		18		19		22		23
AFUDC debt		40		50		44		44		32
Total Fixed Charges		$ 880		$ 799		$ 817		$ 860		$ 889
Ratios of Earnings to Fixed Charges		2.51		3.12		3.12		2.96		2.79

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.