EXHIBIT 12.1 PACIFIC GAS AND ELECTRIC COMPANY AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES - --------------------------------------------------------------------------------------------------- Three Months Year ended December 31, Ended ---------------------------------------------------------- (dollars in thousands) March 31, 1995 1994 1993 1992 1991 1990 - --------------------------------------------------------------------------------------------------- Earnings: Net income $328,687 $1,007,450 $1,065,495 $1,170,581 $1,026,392 $ 987,170 Adjustments for losses of consolidated less than 100% owned affiliates and the Company's equity in undistributed loss (earnings) of unconsolidated affiliates 7,861 (2,764) 6,895 (3,349) 26,671 (2,799) Income tax expense 224,789 836,767 901,890 895,126 851,534 881,647 Net fixed charges 177,278 730,965 821,166 802,198 776,682 812,568 -------- ---------- ---------- ---------- ---------- ---------- Total Earnings $738,615 $2,572,418 $2,795,446 $2,864,556 $2,681,279 $2,678,586 ======== ========== ========== ========== ========== ========== Fixed Charges: Interest on long- term debt $162,149 $ 651,912 $ 731,610 $ 739,279 $ 697,185 $ 699,849 Interest on short- term debt 14,776 77,295 87,819 61,182 77,760 110,982 Interest on capital leases 353 1,758 1,737 1,737 1,737 1,737 Capitalized Interest 465 2,660 46,055 6,511 6,107 7,214 -------- ---------- ---------- ---------- ---------- ---------- Total Fixed Charges $177,743 $ 733,625 $ 867,221 $ 808,709 $ 782,789 819,782 ======== ========== ========== ========== ========== ========== Ratios of Earnings to Fixed Charges 4.16 3.51 3.22 3.54 3.43 3.27 - --------------------------------------------------------------------------------------------------- <FN> Note: For the purpose of computing the Company's ratios of earnings to fixed charges, "earnings" represent net income adjusted for losses of consolidated less than 100% owned affiliates, 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 amounts capitalized and amortization of bond premium, discount and expense; and interest on capital leases.