EX-12.03 6 exhibit1203.htm PG&E CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

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

   
Three
                                
   
Months Ended
                                
   
March 31,
    
Year Ended December 31,
  
(in millions)
  
2017
    
2016
    
2015
    
2014
    
2013
    
2012
  
Earnings:
                                    
Net income
  
$
579
    
$
1,407
    
$
888
    
$
1,450
    
$
828
    
$
830
  
Income tax provision (benefit)
    
109
      
55
      
(27
)
    
345
      
268
      
237
  
Fixed charges
    
315
      
1,440
      
1,284
      
1,206
      
1,012
      
931
  
Pre-tax earnings required to
                                                
cover the preferred stock
                                                
dividend of consolidated
                                                
subsidiaries
    
(3
)
    
(14
)
    
(14
)
    
(15
)
    
(16
)
    
(15
)
Total earnings
  
$
1,000
    
$
2,888
    
$
2,131
    
$
2,986
    
$
2,092
    
$
1,983
  
Fixed charges:
                                                
Interest on short-term
                                                
borrowings and long-term
                                                
debt, net
  
$
303
    
$
1,372
    
$
1,218
    
$
1,140
    
$
942
    
$
859
  
Interest on capital leases
    
1
      
3
      
4
      
6
      
7
      
9
  
AFUDC debt
    
8
      
51
      
48
      
45
      
47
      
48
  
Pre-tax earnings required to
                                                
cover the preferred stock
                                                
    dividend of consolidated
                                                
subsidiaries
    
3
      
14
      
14
      
15
      
16
      
15
  
Total fixed charges
  
$
315
    
$
1,440
    
$
1,284
    
$
1,206
    
$
1,012
    
$
931
  
Ratios of earnings to
                                                
fixed charges
    
3.17
      
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.