EXHIBIT 12.1
                        PACIFIC GAS AND ELECTRIC COMPANY
               COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 
 
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                                                              Year ended December 31,
                                            ----------------------------------------------------------
(dollars in millions)                         1998          1997        1996        1995        1994
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Earnings:
  Net income                                $   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                              629          609          555         895         837
  Net fixed charges                             673          628          683         716         729
                                            -------     --------     --------    --------    --------
      Total Earnings                        $ 2,031     $  2,005     $  1,996    $  2,954    $  2,570
                                            =======     ========     ========    ========    ========
Fixed Charges:                                                                          
  Interest on long-                                                                     
    term debt, net                          $   585     $    485     $    574    $    616    $    639
  Interest on short-                                                                     
    term borrowings                              50          101           75          83          77
  Interest on capital leases                      2            2            3           3           2
  AFUDC debt                                     12           17            8          11          13
  Earnings required to                                                                   
    cover the preferred stock                                                            
    dividend and preferred                                                               
    security distribution                                                                
    requirements of majority                                                             
    owned trust                                  24           24           24           3           -
                                            -------     --------     --------    --------    --------
      Total Fixed Charges                   $   673     $    629     $    684    $    716    $    731
                                            =======     ========     ========    ========    ========
Ratios of Earnings to                                                                   
  Fixed Charges                                3.02         3.19         2.92        4.13        3.52

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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.