EXHIBIT 12 PG&E GAS TRANSMISSION, NORTHWEST CORPORATION SEC FILING - FORM 10-K - Year End 2001 EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES Ratio of earnings to Fixed Charges 2001 2000 1999 1998 1997 - ---------------------------------- ------------ ------------ ------------ ------------ ------------ Earnings Income from Continuing Operations $ 75.4 $ 58.4 $ 61.5 $ 60.3 $ 42.1 Adjustments: Income taxes 34.5 37.4 37.6 35.7 24.8 Fixed charges (as below) 38.0 40.9 42.8 44.1 46.7 ------------ ------------ ------------ ------------ ------------ Total adjusted earnings $147.9 $136.7 $141.9 $140.1 $113.6 ============ ============ ============ ============ ============ Fixed charges: Net interest expense $ 37.0 $ 40.4 $ 41.7 $ 43.0 $ 46.0 Adjustments: Interest component of rents 0.3 0.1 0.0 0.1 0.4 AFUDC debt 0.7 0.4 1.1 1.0 0.3 ------------ ------------ ------------ ------------ ------------ Total fixed charges $ 38.0 $ 40.9 $ 42.8 $ 44.1 $ 46.7 ============ ============ ============ ============ ============ ------------ ------------ ------------ ------------ ------------ Ratio of earnings to fixed charges 3.9 3.3 3.3 3.2 2.4 ============ ============ ============ ============ ============