Pacific Gas & Electric (PCG+A) 10-Q 2006 Q2 Quarterly report

EXHIBIT 12.2

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO COMBINED

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Three Months Ended June 30,		Six Months Ended June 30,		Year Ended December 31,
	2006		2006		2005		2004			2003		2002		2001
Earnings:
Net income	$	231	$	448	$	934	$	3,982		$	923	$	1,819	$	1,015
Adjustments for minority interest in losses of less than 100% owned affiliates and the Company's equity in undistributed income (losses) of less than 50% owned affiliates		-		-		-		-			-		-		-
Income taxes provision		141		273		574		2,561			528		1,178		596
Net fixed charges		171		334		589		671			964		1,029		1,019
Total Earnings	$	543	$	1,055	$	2,097	$	7,214		$	2,415	$	4,026	$	2,630
Fixed Charges:
Interest on short-term borrowings and long-term debt, net	$	166	$	324	$	573	$	682		$	947	$	996	$	981
Interest on capital leases		-		-		1		1			1		2		2
AFUDC debt		5		10		15		(12	)		16		21		12
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust		-		-		-		-			-		10		24
Total Fixed Charges		171		334		589		671			964		1,029		1,019
Preferred Stock Dividends:
Tax deductible dividends		3		6		12		9			9		9		9
Pre-tax earnings required to cover non-tax deductible preferred stock dividend requirements		2		2		13		34			27		28		27
Total Preferred Stock Dividends		5		8		25		43			36		37		36
Total Combined Fixed Charges and Preferred Stock Dividends	$	176	$	342	$	614	$	714		$	1,000	$	1,066	$	1,055
Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends		3.09		3.08		3.42		10.10			2.42		3.78		2.49

Note:

For the purpose of computing Pacific Gas and Electric Company's ratios of earnings to combined fixed charges and preferred stock dividends, "earnings" represent net income adjusted for the minority interest in losses 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 and preferred security distribution requirements of majority-owned trust. "Preferred stock dividends" represent tax deductible dividends and pre-tax earnings that are required to pay the dividends on outstanding preferred securities.