Pacific Gas & Electric (PCG+A) 10-Q 2002 Q2 Quarterly report

EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-POSSESSION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(in millions)	Three months ended June 30,	Six months ended June 30,	Year ended December 31,
	-------------	-------------	----------------------------------------------------------------
	2002	2002	2001	2000	1999	1998	1997
	-------------	-------------	----------------------------------------------------------------
Earnings:
Net income (loss)	$  469	$ 1,065	$ 1,015	$(3,483)	$  788	$  729	$  768
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 (benefit)	325	731	596	(2,154)	648	629	609
Net fixed charges	293 - --------	569 - --------	1,019 - --------	648 - ----------	637 - --------	673 - --------	628 - --------
Total earnings (loss)	1,087 =====	2,365 =====	2,630 =====	(4,989) ======	2,073 =====	2,031 =====	2,005 =====
Fixed Charges:
Interest on short-term borrowings   and long-term debt, net	285	550	981	616	604	635	586
Interest on capital leases	-	1	2	2	3	2	2
AFUDC debt	4	8	12	6	7	12	17
Earnings required to cover the   preferred stock dividend and   preferred security distribution   requirements of majority owned   trust	4 - --------	10 - --------	24 - --------	24 - ----------	24 - --------	24 - --------	24 - --------
Total fixed charges	$  293 =====	$  569 =====	$1,019 =====	$  648 ======	$  638 =====	$  673 =====	$  629 =====
Ratios of Earnings (Loss) to   Fixed Charges	3.71 =====	4.16 =====	2.58 =====	(7.70)(1) ======	3.25 =====	3.02 =====	3.19 =====

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, cash distributions from and equity in undistributed income or loss of Pacific Gas and Electric Company's 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 of subordinated debentures held by trust, interest on capital leases, and earnings required to cover the preferred stock dividend requirements.

⁽¹⁾ The ratio of earnings to fixed charges indicates a deficiency of less than one-to-one coverage aggregating $5,637 million.