EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-PROCESSION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES







(dollars in millions)



Nine months
ended
September 30,
-------------





Year ended December 31,
-------------------------------------------

2001

2000

1999 

1998 

1997 

1996 
 

---------------------------------------------------------

Earnings:

            

Net income (loss)

$  452    

$(3,483) 

$  788

$  729

$  768

$  755

Adjustments for minority interest
  in losses of less than 100%
  owned affiliates and the
  Company's equity in
  undistributed income (losses)
  of less than 50% owned
  affiliates







    -    







    -







-







-







-







3

Income tax provision (benefit)

  272    

(2,154)

648

629

609

555

Net fixed charges

  738    
-----    

  648
------

637
-----

673
-----

628
-----

683
-----

Total Earnings (Loss)

1,462    
=====    

(4,989)
======

2,073
=====

2,031
=====

2,005
=====

1,996
=====

Fixed Charges:

            

Interest on short-term borrowings
  and long-term debt, net


  710    


 616


604


635


586


649

Interest on capital leases

    1    

   2

3

2

2

3

AFUDC debt

    9    

   6

7

12

17

8

Earnings required to cover the
  preferred stock dividend and
  preferred security distribution
  requirements of majority owned
  trust





   19    
-----    





  24
------





24
-----





24
-----





24
-----





24
-----

Total Fixed Charges

$  739    
=====    

$   648  
======

$  638
=====

$  673
=====

$  629
=====

$  684
=====

Ratios of Earnings (Loss) to
Fixed Charges


 1.98    
=====    


  (7.70)(1)
======


3.25
=====


3.02
=====


3.19
=====


2.92
=====


Note:

For the purpose of computing Pacific Gas and Electric Company's (Utility) ratios of earnings to fixed charges, "earnings" represent net income adjusted for the minority interest in losses of less than 100% owned affiliates, cash distributions from and equity in undistributed income or loss of the Utility's less than 50% owned affiliates, income taxes and fixed charges (excluding capitalized interest). "Fixed charges" include interest on long-term debt and short-term borrowings (including a representative portion of rental expense), amortization of bond premium, discount and expense, interest of subordinated debentures held by trust, interest on capital leases, and earnings required to cover the preferred stock dividend requirements.

(1) The ratio of earnings to fixed charges indicates a deficiency of less than one-to-one coverage aggregating $5,637 million.