Pacific Gas & Electric (PCG+A) 10-Q 2008 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,
	2008		2007		2006		2005		2004			2003
Earnings:
Net income	$	236	$	1,204	$	985	$	934	$	3,982		$	923
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		120		571		602		574		2,561			528
Net fixed charges		220		889		801		589		671			964
Total Earnings	$	576	$	2,484	$	2,388	$	2,097	$	7,214		$	2,415
Fixed Charges:
Interest on short-term borrowings and long-term debt, net	$	206	$	834	$	770	$	573	$	682		$	947
Interest on capital leases		6		23		11		1		1			1
AFUDC debt		8		32		20		15		(12	)		16
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust		-		-		-		-		-			10
Total Fixed Charges	$	220	$	889	$	801	$	589	$	671		$	964
Ratios of Earnings to Fixed Charges		2.62		2.79		2.98		3.56		10.75			2.51

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 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.  Fixed charges exclude interest on FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes) tax liabilities.