Pacific Gas & Electric (PCG+A) 10-Q 2011 Q2 Quarterly report

EXHIBIT 12.1

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Three Months Ended June  30,		Six Months Ended June  30,		Year Ended December 31,
	2011		2011		2010		2009		2008		2007		2006
Earnings:
Net income		$359		$560		$1,121		$1,250		$1,199		$1,024		$985
Income taxes provision		189		320		574		482		488		571		602
Net fixed charges		209		422		799		817		860		889		801
Total Earnings		$757		$1,302		$2,494		$2,549		$2,547		$2,484		$2,388
Fixed Charges:
Interest on short-term borrowings and long-term debt, net		$197		$396		$731		$754		$794		$834		$770
Interest on capital leases		4		8		18		19		22		23		11
AFUDC debt		8		18		50		44		44		32		20
Total Fixed Charges		$209		$422		$799		$817		$860		$889		$801
Ratios of Earnings to Fixed Charges		3.62		3.09		3.12		3.12		2.96		2.79		2.98

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 income or loss from equity investees 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, and AFUDC debt. Fixed charges exclude interest on tax liabilities.