Exhibit 12.3
 
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
   
Three Months Ended
June 30,
    
Six Months
 Ended
June 30,
    
Year Ended December 31,
  
   
2009
    
2009
    
2008
    
2007
    
2006
    
2005
    
2004
  
Earnings:
                                          
Income from continuing operations
   $ 392     $ 636     $ 1,198     $ 1,020     $ 1,005     $ 920     $ 3,841  
Income taxes provision
     125       240       425       539       554       544       2,466  
Net fixed charges
     220       443       907       937       845       639       855  
Pre-tax earnings required to
   cover the preferred stock
   dividend of consolidated
   subsidiaries
     (5 )      (8 )      (16 )      (17 )     (15 )      (20 )      (29 ) 
Total Earnings
   $ 732     $ 1,311     $ 2,514     $ 2,479     $ 2,389     $ 2,083     $ 7,133  
Fixed Charges:
                                                        
Interest and amortization of premiums, discounts and capitalized expenses related to short-term borrowings and long-term debt, net
   $ 200     $ 403     $ 825     $ 865     $ 799     $ 603     $ 813  
Interest on capital leases
     5       10       22       23       11       1       1  
AFUDC debt
     10       22       44       32       20       15       12  
Pre-tax earnings required to
   cover the preferred stock
   dividend of consolidated
   subsidiaries
     5       8       16       17       15       20       29  
Total Fixed Charges
   $ 220     $ 443     $ 907     $ 937     $ 845     $ 639     $ 855  
Ratios of Earnings to
Fixed Charges
     3.33       2.96       2.77       2.65       2.83       3.26       8.34  

Note:
For the purpose of computing PG&E Corporation's ratios of earnings to fixed charges, “earnings” represent income from continuing operations adjusted for income taxes, fixed charges (excluding capitalized interest), and pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries.   “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 of consolidated subsidiaries.  Fixed charges exclude interest on tax liabilities in accordance with FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes).