EXHIBIT 12.1 PG&E GAS TRANSMISSION NORTHWEST CORPORATION Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions) Years Ended December 31, ------------------------------------------------------------ Ratio of Earnings to Fixed Charges 1997 1996 1995 1994 1993 - ---------------------------------------- -------- -------- -------- -------- -------- Earnings: Income from continuing operations $ 42.1 $ 43.5 $ 51.6 $ 47.7 $ 6.3 Adjustments: Income taxes 24.8 28.8 31.3 30.0 (12.2) Fixed charges (as below) 46.7 46.3 48.2 47.4 27.2 ------ ------- ------ ------ ------ Total adjusted earnings $113.6 $118.6 $131.1 $125.1 $ 21.3 ====== ======= ====== ====== ====== Fixed charges: (a) Net interest expense $ 46.0 $ 45.7 $ 46.3 $ 45.6 $ 11.7 Adjustments: Interest component of rents 0.4 0.3 0.7 0.9 0.8 AFUDC debt 0.3 0.3 1.2 0.9 14.7 ------ ------ ------ ------ ------ Total fixed charges $ 46.7 $ 46.3 $ 48.2 $ 47.4 $ 27.2 ====== ====== ====== ====== ====== Ratio of earnings to fixed charges 2.4 2.6 2.7 2.6 0.8 ====== ====== ====== ====== ====== Deficiency of earnings to cover fixed charges N/A N/A N/A N/A ($5.9) ====== ====== ====== ====== ====== Year Ended December 31, ----------------------------------------------------------- Ratio of Earnings Before Net Gas Supply Restructuring (GSR) Costs to Fixed Charges 1993 ------ Total adjusted earnings, as above $ 21.3 GSR costs, net of GSR recoveries 51.0 ------ Total adjusted earnings before net GSR costs $ 72.3 ====== Total fixed charges, as above $ 27.2 ====== Ratio of earnings before net GSR costs to fixed charges 2.7 ====== (a) There were no shares of preferred stock issued or outstanding during any of the five years ended December 31, 1997, and therefore there were no fixed charges related to preferred stock during these periods.