EXHIBIT 12 PG&E GAS TRANSMISSION, NORTHWEST CORPORATION SEC FILING - FORM 10-Q - 2ND QTR 1999 EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES For the Three Months Ended For the Six Months Ended ------------------------------------- ------------------------------------- Ratio of earnings to Fixed Charges 1999 1998 1999 1998 ------------- ------------ ------------ ------------- Earnings Net income 11.8 14.4 24.9 30.2 Adjustments: Income taxes 7.3 9.1 15.4 19.3 Fixed charges (as below) 10.6 10.9 21.2 21.9 ------------- ------------ ------------ ------------- Total adjusted earnings 29.7 34.4 61.5 71.4 ============= ============ ============ ============= Fixed charges: (a) Net interest expense 10.3 10.7 20.5 21.6 Adjustments: Interest component of rents 0.0 0.0 0.0 0.0 AFUDC debt 0.3 0.2 0.7 0.3 ------------- ------------ ------------ ------------- Total fixed charges 10.6 10.9 21.2 21.9 ============= ============ ============ ============= Ratio of earnings to fixed charges 2.8 3.2 2.9 3.3 ============= ============ ============ =============