EXHIBIT 12.1 PACIFIC GAS AND ELECTRIC COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES - --------------------------------------------------------------------------------------------------- Three Months Year ended December 31, ended ------------------------------------------------------- (dollars in millions) March 31, 1999 1998 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------- Earnings: Net income $ 153 $ 729 $ 768 $ 755 $ 1,339 $1,007 Adjustments for minority interests in losses of less than 100% owned affiliates and the Company's equity in undistributed losses (income) of less than 50% owned affiliates - - - 3 4 (3) Income tax expense 126 629 609 555 895 837 Net fixed charges 168 673 628 683 716 729 -------- -------- -------- -------- -------- -------- Total Earnings $ 447 $ 2,031 $ 2,005 $ 1,996 $ 2,954 $ 2,570 ======== ======== ======== ======== ======== ======== Fixed Charges: Interest on long- term debt, net $ 134 $ 585 $ 485 $ 574 $ 616 $ 639 Interest on short- term borrowings 26 50 101 75 83 77 Interest on capital leases - 2 2 3 3 2 Capitalized Interest - - 1 1 - 2 AFUDC Debt 2 12 16 7 11 11 Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust 6 24 24 24 3 - -------- -------- -------- -------- -------- -------- Total Fixed Charges $ 168 $ 673 $ 629 $ 684 $ 716 $ 731 ======== ======== ======== ======== ======== ======== Ratios of Earnings to Fixed Charges 2.66 3.02 3.19 2.92 4.13 3.52 - ---------------------------------------------------------------------------------------------------- <FN> 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 minority interest in 	losses of less than 100% owned affiliates, cash distributions from and equity in undistributed income or loss of Pacific Gas and Electric Company's 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 of subordinated debentures held by trust, interest on capital leases, and earnings required to cover the preferred stock dividend requirements.