EXHIBIT 12 PG&E GAS TRANSMISSION, NORTHWEST CORPORATION SEC FILING - FORM 10-Q - 3RD QTR 1999 EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES For the Three Months Ended For the Nine Months Ended ----------------------------------- ---------------------------------- Ratio of earnings to Fixed Charges 1999 1998 1999 1998 - ---------------------------------- --------- --------- -------- --------- Earnings Net income 15.9 15.7 40.8 45.9 Adjustments: Income taxes 9.9 8.5 25.3 27.8 Fixed charges (as below) 10.7 11.0 32.0 33.0 --------- --------- -------- --------- Total adjusted earnings 36.5 35.2 98.1 106.7 ========= ========= ======== ========= Fixed charges: (a) Net interest expense 10.5 10.6 31.1 32.2 Adjustments: Interest component of rents 0.0 0.0 0.0 0.0 AFUDC debt 0.2 0.4 0.9 0.8 --------- --------- -------- --------- Total fixed charges 10.7 11.0 32.0 33.0 ========= ========= ======== ========= Ratio of earnings to fixed charges 3.4 3.2 3.1 3.2 ========= ========= ======== =========