Pacific Gas & Electric (PCG+A) 10-Q 2004 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)			2004		2004		2003		2002		2001		2000		1999
Earnings(1)
	Pre-tax income (loss) from   continuing operations		$	571	$	5,744	$	1,451	$	2,997	$	1,611	$	(5,637)	$	1,436
Add:
	Fixed Charges			164		388		964		1,029		1,019		648		637
Less:
	Preferred dividend requirements of   subsidiaries			-		-		-		-		-		-		-
	Total Earnings (Loss)		$	735	$	6,132	$	2,415	$	4,026	$	2,630	$	(4,989)	$	2,073
Fixed Charges (2)
	Interest expense, net, including   amortization of debt issue costs,   premiums and discounts		$	158	$	373	$	939	$	990	$	976		609		595
	AFUDC Debt			2		8		16		21		12		6		7
	Estimate of interest expense   within rents			4		7		9		8		7		9		11
	Preferred dividend requirements   of subsidiaries			-		-		-		-		-		-		-
	Preferred security requirements of   wholly-owned trust			-		-		-		10		24		24		24
	Total Fixed Charges		$	164	$	388	$	964	$	1,029	$	1,019	$	648	$	637
Preferred Stock Dividends
	Tax deductible dividends		$	2	$	4	$	9	$	9	$	9	$	9	$	9
	Pretax earnings required to cover   non-tax deductible preferred stock   dividend requirements			7		22		27		28		27		27		27
	Total Preferred Stock Dividends			9		26		36		37		36		36		36
	Total Fixed Charges and Preferred   Stock Dividends		$	173	$	414	$	1,000	$	1,066	$	1,055	$	684	$	673
Ratio of Earnings (Loss) to Combined    Fixed Charges and Preferred Stock    Dividends (3)				4.25		14.81		2.42		3.78		2.49		(7.29)		3.08
(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.