EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|  | Year ended December 31, |
|  | 2008 |  |  | 2007 |  |  | 2006 |  |  | 2005 |  |  | 2004 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 1,199 |  |  | $ | 1,024 |  |  | $ | 985 |  |  | $ | 934 |  |  | $ | 3,982 |
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 taxes provision |  |  | 488 |  |  |  | 571 |  |  |  | 602 |  |  |  | 574 |  |  |  | 2,561 |
Net fixed charges |  |  | 772 |  |  |  | 889 |  |  |  | 801 |  |  |  | 589 |  |  |  | 671 |
Total Earnings |  | $ | 2,459 |  |  | $ | 2,484 |  |  | $ | 2,388 |  |  | $ | 2,097 |  |  | $ | 7,214 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on short-term borrowings and long-term debt, net |  |  | 794 |  |  | $ | 834 |  |  | $ | 770 |  |  | $ | 573 |  |  | $ | 682 |
Interest on capital leases |  |  | 22 |  |  |  | 23 |  |  |  | 11 |  |  |  | 1 |  |  |  | 1 |
AFUDC debt |  |  | (44 | ) |  |  | 32 |  |  |  | 20 |  |  |  | 15 |  |  |  | (12 | )
Earnings required to cover preferred stock dividends |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Fixed Charges |  | $ | 772 |  |  | $ | 889 |  |  | $ | 801 |  |  | $ | 589 |  |  | $ | 671 |
Ratios of Earnings to Fixed Charges |  |  | 3.19 |  |  |  | 2.79 |  |  |  | 2.98 |  |  |  | 3.56 |  |  |  | 10.75 |

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 preferred stock dividends. Fixed charges exclude interest on tax liabilities in accordance with FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes).