PG&E GAS TRANSMISSION, NORTHWEST CORPORATION SEC FILING - FORM 10-K - Year End 1999 EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES Ratio of earnings to Fixed Charges 1999 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------ Earnings Income from Continuing Operations $ 61.5 $ 60.3 $ 42.1 $ 43.5 $ 51.6 Adjustments: Income taxes 37.6 35.7 24.8 28.8 31.3 Fixed charges (as below) 42.8 44.1 46.7 46.3 48.2 -------------------------------------------------------- Total adjusted earnings $141.9 $140.1 $113.6 $118.6 $131.1 ======================================================== Fixed charges: (a) Net interest expense $ 41.7 $ 43.0 $ 46.0 $ 45.7 $ 46.3 Adjustments: Interest component of rents 0.0 0.1 0.4 0.3 0.7 AFUDC debt 1.1 1.0 0.3 0.3 1.2 -------------------------------------------------------- Total fixed charges $ 42.8 $ 44.1 $ 46.7 $ 46.3 $ 48.2 ======================================================== Ratio of earnings to fixed charges 3.3% 3.2% 2.4% 2.6% 2.7% ========================================================