EX-12.2 13 utilityex12-2.htm COMPUTATION OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK FOR PG&E

EXHIBIT 12.2
PACIFIC GAS AND ELECTRIC COMPANY
A DEBTOR-IN-POSSESSION
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Three
months
ended
June 30,

Six
months
ended
June 30,




Year ended December 31,

(in millions)

2003

 

2003

 

2002

 

2001

 

2000

 

1999

 

1998

                           

Earnings:

                         

Net income (loss)

$

345 

 

$

272 

 

$

1,819 

 

$

1,015 

 

$

(3,483)

 

$

788 

 

$

729 

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 (benefit)

209 

 

125 

 

1,178 

 

596 

 

(2,154)

 

648 

 

629 

Net fixed charges

230 

 

458 

 

1,029 

 

1,019 

 

648 

 

637 

 

673 

Total Earnings (Loss)

$

784 

 

$

855 

 

$

4,026 

 

$

2,630 

 

$

(4,989)

 

$

2,073 

 

$

2,031 

Fixed Charges:

                         

Interest on short-term borrowings
  and long-term debt, net

$

226 

 

$

448 

 

$

996 

 

$

981 

 

$

616 

 

$

604 

 

$

635 

Interest on capital leases

- 

 

1 

 

2 

 

2 

 

2 

 

3 

 

2 

AFUDC debt

4 

 

9 

 

21 

 

12 

 

6 

 

7 

 

12 

Earnings required to cover the
  preferred stock dividend and
  preferred security distribution
  requirements of majority owned trust

- 

 

- 

 

10 

 

24 

 

24 

 

24 

 

24 

Total Fixed Charges

230 

 

458 

 

1,029 

 

1,019 

 

648 

 

638 

 

673 

Preferred Stock Dividends:

                         

Tax deductible dividends

2 

 

4 

 

9 

 

9 

 

9 

 

9 

 

9 

Pretax earnings required to cover
  non-tax deductible preferred stock
  dividend requirements

7 

 

14 

 

28 

 

27 

 

27 

 

27 

 

31 

Total Preferred Stock Dividends

9 

 

18 

 

37 

 

36 

 

36 

 

36 

 

40 

Total Combined Fixed Charges and
  Preferred Stock Dividends

$

239 

 

$

476 

 

$

1,066 

 

$

1,055 

 

$

684 

 

$

674 

 

$

713 

Ratios of Earnings (Loss) to   Combined Fixed Charges and
  Preferred Stock Dividend

3.28 

 

1.80 

 

3.78 

 

2.49 

 

(7.29)

(1)

3.08 

 

2.85 


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 that are required to pay the dividends on outstanding preference securities.

(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.