Pacific Gas & Electric (PCG+A) 10-Q 2005 Q2 Quarterly report

Exhibit 12.2
Pacific Gas and Electric Company
Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends
			Three Months Ended June 30,			Six Months Ended June 30,	Year Ended December 31,
(dollars in millions)			2005			2005	2004			2003			2002			2001			2000
Earnings(1)
	Pre-tax income (loss) from continuing    operations		$	442	$	808	$	6,543		$	1,451		$	2,997		$	1,611		$	(5,637)
Add:
	Fixed Charges		132		294			671		964			1,029			1,019			648
Less:
	Preferred dividend requirements of    subsidiaries		-		-		-			-			-			-			-
	Total Earnings (Loss)		$	574	$	1,102	$		7,214	$		2,415	$		4,026	$		2,630	$		(4,989)
Fixed Charges (2)
	Interest expense, net, including    amortization of debt issue costs,    premiums and discounts		$	124	$	279	$		668	$		939	$		990	$		976	$		609
	AFUDC Debt		4		7		(12)			16			21			12			6
	Estimate of interest expense within rents		4		8		15			9			8			7			9
	Preferred dividend requirements of    subsidiaries		-		-		-			-			-			-			-
	Preferred security requirements of    wholly-owned trust		-		-		-			-			10			24			24
	Total Fixed Charges		$	132	$	294	$	671		$		964	$		1,029	$		1,019	$	648
Preferred Stock Dividends
	Tax deductible dividends		$	3	$	6	$	9		$	9		$		9	$		9	$	9
	Pre-tax earnings required to cover    non-tax deductible preferred stock    dividend requirements			5		11		34			27				28			27		27
	Total Preferred Stock Dividends		$	8	$	17	$	43		$	36		$		37	$		36	$	36
	Total Fixed Charges and Preferred Stock Dividends		$	140	$	311	$	714		$	1,000		$		1,066	$	1,055		$	684
Ratio of Earnings (Loss) to Combined Fixed Charges and Preferred Stock Dividends (3)			4.10			3.54		10.10		2.42			3.78			2.49			(7.29)
(1)		For purposes of computing the ratio of earnings to fixed charges, "earnings" represents pre-tax income from continuing operations adjusted for minority interest in consolidated subsidiaries and equity in income or loss from subsidiaries accounted for using the equity method plus fixed charges, as computed, less the pre-tax earnings required to cover the preferred dividend requirements of subsidiaries.
(2)		"Fixed charges" include interest, including amortization of debt issue costs, premiums and discounts, the debt portion of the allowance for funds used during construction, an estimate of the amount of interest within rents, and the preferred security requirements of consolidated subsidiaries.
(3)		The ratio of earnings to fixed charges for the year 2000 indicates a ratio of less than one-to-one. The dollar amount of the deficiency is approximately $5.6 billion.