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EXHIBIT 12.2
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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Nine months Year ended December 31,
ended -------------------------------------------------------
(dollars in millions) September 30, 2000 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net income $ 673 $ 788 $ 729 $ 768 $ 755 $ 1,339
Adjustments for minority
interests in losses of
less than 100% owned
affiliates and the
Company's equity in
undistributed losses
(income) of less than
50% owned affiliates - - - - 3 4
Income tax expense 594 648 629 609 555 895
Net fixed charges 465 637 673 628 683 716
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Total Earnings $ 1,732 $ 2,073 $ 2,031 $ 2,005 $ 1,996 $ 2,954
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Fixed Charges:
Interest on long-
term debt, net $ 375 $ 523 $ 585 $ 485 $ 574 $ 616
Interest on short
term borrowings 66 81 50 101 75 83
Interest on capital leases 1 3 2 2 3 3
AFUDC debt 5 7 12 17 8 11
Earnings required to
cover the preferred stock
dividend and preferred
security distribution
requirements of majority
owned trust 18 24 24 24 24 3
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Total Fixed Charges $ 465 $ 638 $ 673 $ 629 $ 684 $ 716
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Preferred Stock Dividends:
Tax deductible dividends $ 6 $ 9 $ 9 $ 10 $ 10 $ 11
Pretax earnings required
to cover non-tax
deductible preferred
stock dividend
requirements 20 27 31 39 39 100
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Total Preferred
Stock Dividends $ 26 $ 36 $ 40 $ 49 $ 49 $ 111
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Total Combined Fixed
Charges and Preferred
Stock Dividends $ 491 $ 674 $ 713 $ 678 $ 733 $ 827
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Ratios of Earnings to
Combined Fixed Charges and
Preferred Stock Dividends 3.53 3.08 2.85 2.96 2.72 3.57
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<FN>
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, cash
distributions from and equity in undistributed income or loss of Pacific Gas and Electric
Company'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 on capital leases, interest of subordinated
debentures held by trust, and earnings required to cover the preferred stock dividend
requirements of majority owned subsidiaries. "Preferred stock dividends" represent pretax
earnings which would be required to cover such dividend requirements.
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