Pacific Gas & Electric (PCG+A) 10-Q 2012 Q1 Quarterly report

EXHIBIT 12.2

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO COMBINED

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Three Months
	Ended
	March 31,		Year ended December 31,
Earnings:	2012		2011		2010		2009		2008		2007
Net income		$ 231		$ 845		$ 1,121		$ 1,250		$ 1,199		$ 1,024
Income taxes provision		113		480		574		482		488		571
Fixed charges		213		880		799		817		860		889
Total earnings		$ 557		$ 2,205		$ 2,494		$ 2,549		$ 2,547		$ 2,484
Fixed charges:
Interest on short-term borrowings and long-term debt, net		$ 197		$ 824		$ 731		$ 754		$ 794		$ 834
Interest on capital leases		4		16		18		19		22		23
AFUDC debt		12		40		50		44		44		32
Total fixed charges		$ 213		$ 880		$ 799		$ 817		$ 860		$ 889
Preferred stock dividends:
Tax deductible dividends		$ 2		$ 9		$ 9		$ 9		$ 9		$ 9
Pre-tax earnings required to cover non-tax deductible preferred stock dividend requirements		1		8		7		7		7		8
Total preferred stock dividends		$ 3		$ 17		$ 16		$ 16		$ 16		$ 17
Total combined fixed charges and preferred stock dividends		$ 216		$ 897		$ 815		$ 833		$ 876		$ 906
Ratios of earnings to combined fixed charges and preferred stock dividends		2.58		2.46		3.06		3.06		2.91		2.74

Note:

For the purpose of computing Pacific Gas and Electric Company’s ratios of earnings to combined fixed charges and preferred stock dividends, “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, AFUDC debt, and earnings required to cover the preferred stock dividend requirements. “Preferred stock dividends” represent tax deductible dividends and pre-tax earnings that are required to pay the dividends on outstanding preferred securities. Fixed charges exclude interest on tax liabilities.