EXHIBIT 12.2

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO COMBINED

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

		Year ended December 31,
Earnings:		2008				2007				2006				2005				2004
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
Preferred Stock Dividends:
Tax deductible dividends			9				9				12				12				9
Pre-tax earnings required to cover non-tax deductible preferred stock dividend requirements			7				8				3				13				34
Total Preferred Stock Dividends			16				17				15				25				43
Total Combined Fixed Charges and Preferred Stock Dividends		$	788			$	906			$	816			$	614			$	714
Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends			3.12				2.74				2.93				3.42				10.10

Note:

For the purpose of computing Pacific Gas and Electric Company’s ratios of earnings to combined fixed charges and preferred stock dividends, “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.  “Preferred stock dividends” represent tax deductible dividends and pre-tax earnings that are required to pay dividends on the outstanding series of preferred stock.  Fixed charges exclude interest on tax liabilities in accordance with FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes).