Pacific Gas & Electric (PCG+A) 10-Q 2009 Q3 Quarterly report

EXHIBIT 12.1

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Three Months Ended September 30,		Nine Months Ended September 30,		Year Ended December 31,
	2009		2009		2008		2007		2006		2005		2004
Earnings:
Income from continuing operations	$	353	$	983	$	1,199	$	1,024	$	985	$	934	$	3,982
Income taxes provision		111		374		488		571		602		574		2,561
Net fixed charges		204		621		860		889		801		589		695
Total Earnings	$	668	$	1,978	$	2,547	$	2,484	$	2,388	$	2,097	$	7,238
Fixed Charges:
Interest and amortization of premiums, discounts and capitalized expenses related to short-term borrowings and long-term debt, net	$	188	$	573	$	794	$	834	$	770	$	573	$	682
Interest on capital leases		5		15		22		23		11		1		1
AFUDC debt		11		33		44		32		20		15		12
Total Fixed Charges	$	204	$	621	$	860	$	889	$	801	$	589	$	695
Ratios of Earnings to Fixed Charges		3.27		3.19		2.96		2.79		2.98		3.56		10.41

Note:

For the purpose of computing Pacific Gas and Electric Company’s ratios of earnings to fixed charges, “earnings” represent income from continuing operations adjusted for 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, and AFUDC debt.  Fixed charges exclude interest on tax liabilities in accordance with the Income Tax Topic of the FASB ASC.