<TABLE>
EXHIBIT 12.1
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
<CAPTION>
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
-------- -------- -------- -------- -------- --------
Total Earnings $ 1,732 $ 2,073 $ 2,031 $ 2,005 $ 1,996 $ 2,954
======== ======== ======== ======== ======== ========
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 2 2 2 3 3
AFUDC debt 5 8 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
-------- -------- -------- -------- -------- --------
Total Fixed Charges $ 465 $ 638 $ 673 $ 629 $ 684 $ 716
======== ======== ======== ======== ======== ========
Ratios of Earnings to
Fixed Charges 3.72 3.25 3.02 3.19 2.92 4.13
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<FN>
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, 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 of subordinated debentures held by trust, interest on capital leases, and
earnings required to cover the preferred stock dividend requirements.
</FN>
</TABLE>
