EXHIBIT 12.1

PACIFIC GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Year ended December 31,
	2008			2007		2006		2005		2004
Earnings:
Net income	$	1,199		$	1,024	$	985	$	934	$	3,982
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 taxes provision		488			571		602		574		2,561
Net fixed charges		772			889		801		589		671
Total Earnings	$	2,459		$	2,484	$	2,388	$	2,097	$	7,214
Fixed Charges:
Interest on short-term borrowings and long-term debt, net		794		$	834	$	770	$	573	$	682
Interest on capital leases		22			23		11		1		1
AFUDC debt		(44	)		32		20		15		(12	)
Earnings required to cover preferred stock dividends		-			-		-		-		-
Total Fixed Charges	$	772		$	889	$	801	$	589	$	671
Ratios of Earnings to Fixed Charges		3.19			2.79		2.98		3.56		10.75

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, equity in undistributed income or losses of 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, AFUDC debt, and earnings required to cover preferred stock dividends.   Fixed charges exclude interest on tax liabilities in accordance with FASB Interpretation No. 48 (Accounting for Uncertainty in Income Taxes).