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,
                              ------------------------------------------------------------
(dollars in millions)              2000          1999        1998         1997        1996
------------------------------------------------------------------------------------------
                                                                     
Earnings:
  Net income (loss)           $  (3,483)     $    788    $    729    $     768   $     755
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
  Income tax expense             (2,154)          648         629          609         555
  Net fixed charges                 648           637         673          628         683
                              ---------      --------    --------    ---------   ---------
      Total Earnings          $  (4,989)     $  2,073    $  2,031    $   2,005   $   1,996
                              =========      ========    ========    =========   =========
Fixed Charges:
  Interest on long-
    term debt, net            $     508     $     523    $    585    $     485   $     574
  Interest on short-
    term borrowings                 108            81          50          101          75
  Interest on capital leases          2             3           2            2           3
  AFUDC debt                          6             7          12           17           8
  Earnings required to
    cover the preferred stock
    dividend and preferred
    security distribution
    requirements of majority
    owned trust                      24            24          24           24          24
                              ---------      --------    --------    ---------   ---------
      Total Fixed Charges     $     648      $    638    $    673    $     629   $     684
                              ---------      --------    --------    ---------   ---------
Preferred Stock Dividends:
  Tax deductible dividends    $       9      $      9    $      9    $      10   $      10
  Pretax earnings required
    to cover non-tax
    deductible preferred
    stock dividend
    requirements              $      27      $     27    $     31    $      39   $      39
                              ---------      --------    --------    ---------   ---------
    Total Preferred
     Stock Dividends          $      36      $     36    $     40    $      49   $      49
                              ---------      --------    --------    ---------   ---------
  Total Combined Fixed
    Charges and Preferred
    Stock Dividends           $     684      $    674    $    713    $     678   $     733
                              =========      ========    ========    =========   =========
Ratios of Earnings to
  Combined Fixed Charges and
  Preferred Stock Dividends       (7.29)(1)      3.08        2.85         2.96        2.72
---------------------------------------------------------------------------------------------

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.

(1)      The ratio of earnings to combined fixed charges and preferred stock
         dividends indicates a deficiency of less than one-to-one coverage
         aggregating $5,673 million.