EXHIBIT 12.2 		 PACIFIC GAS AND ELECTRIC COMPANY AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS - --------------------------------------------------------------------------------------------------- 				 			 Nine Months Year ended December 31, 			 Ended ---------------------------------------------------------- (dollars in thousands) 9/30/94 1993 1992 1991 1990 1989 - --------------------------------------------------------------------------------------------------- Earnings: Net income $ 903,950 $1,065,495 $1,170,581 $1,026,392 $ 987,170 $ 900,628 Company's equity in undistributed loss (earnings) of unconsolidated affiliates - - (3,349) 26,671 (2,799) (4,352) Income tax expense 736,189 901,890 895,126 851,534 881,647 669,885 Net fixed charges 531,096 730,708 758,333 760,957 788,889 821,982 			 -------- ---------- ---------- ---------- ---------- ---------- Total Earnings $2,171,235 $2,698,093 $2,820,691 $2,665,554 $2,654,907 $2,388,143 			 ========== ========== ========== ========== ========== ========== Fixed Charges: Interest on long- term debt $ 470,273 $ 642,408 $ 696,765 $ 682,811 $ 677,476 $ 712,607 Interest on short- term debt 60,465 87,819 61,182 77,760 110,982 108,869 Interest on capital leases 1,302 1,737 1,737 1,737 1,737 1,737 			 ---------- ---------- ---------- ---------- ---------- ---------- Total Fixed Charges 532,040 731,964 759,684 762,308 790,195 823,213 			 ---------- ---------- ---------- ---------- ---------- ---------- Preferred Stock Dividends: Tax deductible dividends 3,504 4,814 5,136 5,136 5,136 5,136 Pretax earnings required to cover non-tax deductible preferred stock dividend requirements 72,232 108,937 130,147 154,404 175,881 167,440 			 ---------- ---------- ---------- ---------- ---------- ---------- Total Preferred Stock Dividends 75,736 113,751 135,283 159,540 181,017 172,576 			 ---------- ---------- ---------- ---------- ---------- ---------- Total Combined Fixed Charges and Preferred Stock Dividends $ 607,776 $ 845,715 $ 894,967 $ 921,848 $ 971,212 $ 995,789 			 ========== ========== ========== ========== ========== ========== Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends 3.57 3.19 3.15 2.89 2.73 2.40 - --------------------------------------------------------------------------------------------------- <F/N> Note: For the purpose of computing the Company's ratios of earnings to combined fixed charges and preferred stock dividends, "earnings" represent net income adjusted for the Company's equity in undistributed earnings or loss of unconsolidated affiliates, income taxes and fixed charges (excluding capitalized interest). "Fixed charges" consist of interest on short-term and long-term debt (including amortization of bond premium, discount and expense; and excluding interest on decommissioning trust funds [for which an equal amount of interest income is recorded] and amortization of the gain or loss on reacquired debt securities) and interest on capital leases (including capitalized interest). "Preferred stock dividends" represent the sum of requirements for preferred stock dividends that are deductible for federal income tax purposes and requirements for preferred stock dividends that are not deductible for federal income tax purposes increased to an amount representing pretax earnings which would be required to cover such dividend requirements.