EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
   
Three Months Ended March 31,
    
Year Ended December 31,
  
   
2007
    
2006
    
2005
    
2004
    
2003
    
2002
  
Earnings:
                                    
Net income
   $
261
     $
985
     $
934
     $
3,982
     $
923
     $
1,819
  
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
    
-
      
-
      
-
      
-
      
-
      
-
  
Income tax provision
   
145
      
602
      
574
      
2,561
      
528
      
1,178
  
Net fixed charges
    
220
      
801
      
589
      
671
      
964
      
1,029
  
Total Earnings
   $
626
     $
2,388
     $
2,097
     $
7,214
     $
2,415
     $
4,026
  
Fixed Charges:
                                                
Interest on short-term borrowings and long-term debt, net
   $
207
     $
770
     $
573
     $
682
     $
947
     $
996
  
Interest on capital leases
    
6
      
11
      
1
      
1
      
1
      
2
  
AFUDC debt
    
7
      
20
      
15
       (12 )    
16
      
21
  
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust
    
-
      
-
      
-
      
-
      
-
      
10
  
Total Fixed Charges
   $
220
     $
801
     $
589
     $
671
     $
964
     $
1,029
  
Ratios of Earnings to
Fixed Charges
    
2.85
      
2.98
      
3.56
      
10.75
      
2.51
      
3.91
  
 
Note:

For the purpose of computing Pacific Gas and Electric Company's ratios of earnings to fixed charges, "earnings" represent net income adjusted for the minority interest in losses of less than 100% owned affiliates, equity in undistributed income or losses of 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 on capital leases, AFUDC debt, and earnings required to cover the preferred stock dividend requirements and preferred security distribution requirements of majority-owned trust.  Fixed charges exclude interest on FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes) tax liabilities.