EXHIBIT 12.2
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-POSSESSION
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Six months
ended June 30, Year ended December 31,
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(dollars in millions) 2001 2000 1999 1998 1997 1996
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Earnings:
Net income (loss) $ (292) $(3,483) $ 788 $ 729 $ 768 $ 755
Adjustments for minority interest
in losses of less than 100% owned
affiliates and the Company's
equity in undistributed income
(losses) of less than 50% owned
affiliates - - - - - 3
Income tax expense (200) (2,154) 648 629 609 555
Net fixed charges 481 648 637 673 628 683
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Total Earnings (11) (4,989) 2,073 2,031 2,005 1,996
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Fixed Charges:
Interest on short-term
borrowings and long-term debt, net 462 616 604 635 586 649
Interest on capital leases 1 2 3 2 2 3
AFUDC debt 6 6 7 12 17 8
Earnings required to cover the
preferred stock dividend and
preferred security distribution
requirements of majority owned 12 24 24 24 24 24
trust ----- ------ ----- ----- ----- -----
Total Fixed Charges 481 648 638 673 629 684
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Preferred Stock Dividends:
Tax deductible dividends 4 9 9 9 10 10
Pretax earnings required to cover
non-tax deductible preferred
stock dividend requirements 14 27 27 31 39 39
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Total Preferred Stock Dividends 18 36 36 40 49 49
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Total Combined Fixed Charges and
Preferred Stock Dividends $ 499 $ 684 $ 674 $ 713 $ 678 $ 733
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Ratios of Earnings to Combined
Fixed and Preferred Stock (0.02)(1) (7.29)(1) 3.08 2.85 2.96 2.72
Dividend ===== ===== ===== ===== ===== =====
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 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 on capital leases, interest of
subordinated debentures held by trust, and earnings required to cover the
preferred stock dividend requirements of majority owned subsidiaries.
"Preferred stock dividends" represent pretax earnings, which would be required
to cover such dividend requirements.
(1) The ratio of earnings to combined fixed charges and preferred stock
dividends indicates a deficiency of less than one-to-one coverage aggregating
$510 million for the six months ended June 30,2001, and $5,673 million for the
twelve months ended December 31,2000.