EX-12.1 9 dex121.htm COMPUTATION OF RATIOS OF EARNINGS Prepared by R.R. Donnelley Financial -- Computation of Ratios of Earnings
 
EXHIBIT 12.1
 
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-POSSESSION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
    
Year ended December 31,
(dollars in millions)
   
2001
   
2000
     
1999
   
1998
   
1997
Earnings:
                                     
Net income (loss)
   
$
1,015
   
$
(3,483
)
   
$
788
   
$
729
   
$
768
Adjustments for minority interest in losses of less than 100% owned affiliates and the Company’s equity in undistributed income (losses) of less than 50% owned affiliates
   
 
—
   
 
—
 
   
 
—
   
 
—
   
 
—
Income tax expense (benefit)
   
 
596
   
 
(2,154
)
   
 
648
   
 
629
   
 
609
Net fixed charges
   
 
1,019
   
 
648
 
   
 
637
   
 
673
   
 
628
    
  
  
  
  
Total earnings
   
$
2,630
   
$
(4,989
)
   
$
2,073
   
$
2,031
   
$
2,005
    
  
  
  
  
Fixed charges:
                                     
Interest on short-term borrowings and long-term debt, net
   
$
981
   
$
616
 
   
$
604
   
$
635
   
$
586
Interest on capital leases
   
 
2
   
 
2
 
   
 
3
   
 
2
   
 
2
AFUDC debt
   
 
12
   
 
6
 
   
 
7
   
 
12
   
 
17
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
   
$
1,019
   
$
648
 
   
$
638
   
$
673
   
$
629
    
  
  
  
  
Ratios of Earnings to Fixed Charges
   
 
2.58
   
 
(7.70
)(1)
   
 
3.25
   
 
3.02
   
 
3.19
    
  
  
  
  
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.
 
(1)      
 
The ratio of earnings to fixed charges indicates a deficiency of less than one-to-one coverage aggregating $5,637 million.

1