EX-12.03 13 exhibit1203.htm PG&E CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.3

EXHIBIT 12.3
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

   
Year Ended December 31,
  
(in millions)
  
2016
    
2015
    
2014
    
2013
    
2012
  
Earnings:
                              
Net income
  
$
1,407
    
$
888
    
$
1,450
    
$
828
    
$
830
  
Income tax provision (benefit)
    
55
      
(27
)
    
345
      
268
      
237
  
Fixed charges
    
1,440
      
1,284
      
1,206
      
1,012
      
931
  
Pre-tax earnings required to cover
                                        
the preferred stock dividend of
                                        
consolidated subsidiaries
    
(14
)
    
(14
)
    
(15
)
    
(16
)
    
(15
)
Total earnings
  
$
2,888
    
$
2,131
    
$
2,986
    
$
2,092
    
$
1,983
  
Fixed charges:
                                        
Interest on short-term
                                        
borrowings and long-term
                                        
debt, net
  
$
1,372
    
$
1,218
    
$
1,140
    
$
942
    
$
859
  
Interest on capital leases
    
3
      
4
      
6
      
7
      
9
  
AFUDC debt
    
51
      
48
      
45
      
47
      
48
  
Pre-tax earnings required to cover
                                        
 the preferred stock dividend of
                                        
consolidated subsidiaries
    
14
      
14
      
15
      
16
      
15
  
Total fixed charges
  
$
1,440
    
$
1,284
    
$
1,206
    
$
1,012
    
$
931
  
Ratios of earnings to fixed charges
    
2.01
      
1.66
      
2.48
      
2.07
      
2.13
  

Note:
For the purpose of computing PG&E Corporation's ratios of earnings to fixed charges, "earnings" represent income from continuing operations adjusted for income taxes, fixed charges (excluding capitalized interest), and pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries.  "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 of consolidated subsidiaries.  Fixed charges exclude interest on tax liabilities.