EX-12.03 9 exhibit1203.htm PG&E CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.3
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

   
Nine
                                
   
Months Ended
                                
   
September 30,
    
Year Ended December 31,
  
(in millions)
  
2016
    
2015
    
2014
    
2013
    
2012
    
2011
  
Earnings:
                                    
Net income
  
$
711
    
$
888
    
$
1,450
    
$
828
    
$
830
    
$
858
  
Income tax (benefit) provision
    
(105
)
    
(27
)
    
345
      
268
      
237
      
440
  
Fixed charges
    
1,088
      
1,284
      
1,206
      
1,012
      
931
      
919
  
Pre-tax earnings required to cover
                                                
cover the preferred stock
                                                
dividend of consolidated
                                                
subsidiaries
    
(10
)
    
(14
)
    
(15
)
    
(16
)
    
(15
)
    
(17
)
Total earnings
  
$
1,684
    
$
2,131
    
$
2,986
    
$
2,092
    
$
1,983
    
$
2,200
  
Fixed charges:
                                                
Interest on short-term
                                                
borrowings and long-term
                                                
debt, net
  
$
1,036
    
$
1,218
    
$
1,140
    
$
942
    
$
859
    
$
846
  
Interest on capital leases
    
3
      
4
      
6
      
7
      
9
      
16
  
AFUDC debt
    
39
      
48
      
45
      
47
      
48
      
40
  
Pre-tax earnings required to
                                                
cover the preferred stock
                                                
    dividend of consolidated
                                                
subsidiaries
    
10
      
14
      
15
      
16
      
15
      
17
  
Total fixed charges
  
$
1,088
    
$
1,284
    
$
1,206
    
$
1,012
    
$
931
    
$
919
  
Ratios of earnings to
                                                
fixed charges
    
1.55
      
1.66
      
2.48
      
2.07
      
2.13
      
2.39
  
                                                 
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.