EX-12.2 9 ex1202.htm COMP. OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK FOR PG&E ex1202.htm .

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,
Earnings:
2009
2008
2007
2006
2005
Net income
$1,250  
$1,199  
$1,024  
$985  
$934  
Adjustments for income or loss from equity investees of less than 100% owned affiliates and the Company's equity in undistributed income (losses) of less than 50% owned affiliates
-  
-  
-  
-  
-  
Income taxes provision
482  
488  
571  
602  
574  
Fixed charges
817  
860  
889  
801  
589  
Total Earnings
$2,549  
$2,547  
$2,484  
$2,388  
$2,097  
           
Fixed Charges:
          
Interest on short-term borrowings
and long-term debt, net
$754  
$794  
$834  
$770  
$573  
Interest on capital leases
19  
22  
23  
11  
1  
AFUDC debt
44  
44  
32  
20  
15  
Earnings required to cover the preferred stock dividend and preferred security distribution requirements of majority owned trust
-  
-  
-  
  
-  
Total Fixed Charges
$817  
$860  
$889  
$801  
$589  
           
Preferred Stock Dividends:
          
Tax deductible dividends
9  
9  
9  
12  
9  
Pre-tax earnings required to cover
non-tax deductible preferred stock
dividend requirements
7  
7  
8  
3  
12  
           
Total Preferred Stock Dividends
16  
16  
17  
15  
21  
           
Total Combined Fixed Charges
and Preferred Stock Dividends
$833  
$876  
$906  
$816  
$610  
Ratios of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
3.06  
2.91  
2.74  
2.93  
3.44  


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 income or loss from equity investees 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 the preferred stock dividend requirements and preferred security distribution requirements of majority-owned trust. “Preferred stock dividends” represent tax deductible dividends and pre-tax earnings that are required to pay the dividends on outstanding preferred securities.  Fixed charges exclude interest on tax liabilities.
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