|                                                                                               |   |   |    |   |   |    |   |   |    | **Exhibit                12.1** |   |
|----------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|---------------------------------|--------|
| **PUGET                ENERGY**                                                                    |
| **STATEMENT                SETTING FORTH COMPUTATIONS OF RATIOS OF**                               |
| **EARNINGS                TO FIXED CHARGES**                                                       |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |
| Years                Ended December 31,                                                            |   | 2006   |    | 2005   |   | 2004    |   | 2003   |    | 2002                            |   |
| Earnings                Available For Fixed Charges:                                               |   |   |    |   |   |    |   |   |    |                            |   |
| Pre-tax                income:                                                                     |   |   |    |   |   |    |   |   |    |                            |   |
|    Income                from continuing operations                                 |   | $      | 167,224 |   | $      | 146,282 |   | $      | 125,411 |                            | $      | 119,750 |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |   | 96,270  |   |   | 88,608  |   |   | 76,756  |                            |   | 70,775 |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |   | (3,784  | )      |   | 2,142   |   |   | (17     | )                               |   | (162 | ) |   | 2,082 |   |
|    Capitalized                interest                                              |   |   | (7,978  | )      |   | (3,800  | )      |   | (2,796  | )                               |   | (2,272 | ) |   | (1,397 | ) |
| Total                                                                                              |   | $      | 251,732 |   | $      | 233,232 |   | $      | 199,354 |                            | $      | 188,091 |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $      | 184,013 |   | $      | 174,682 |   | $      | 172,050 |                            | $      | 182,902 |   | $ | 192,830 |   |
|    Other                interest                                                    |   |   | 7,978   |   |   | 3,800   |   |   | 2,796   |                            |   | 2,272 |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |   | 9,151   |   |   | 5,234   |   |   | 5,424   |                            |   | 4,669 |   |   | 5,394 |   |
| Total                                                                                              |   | $      | 201,142 |   | $      | 183,716 |   | $      | 180,270 |                            | $      | 189,843 |   | $ | 199,621 |   |
| Earnings                available for combined fixed charges                                       |   | $      | 452,874 |   | $      | 416,948 |   | $      | 379,624 |                            | $      | 377,934 |   | $ | 361,292 |   |
| Ratio                of Earnings to Fixed Charges                                                  |   |   | 2.25x   |   |   | 2.27x   |   |   | 2.11x   |                            |   | 1.99x |   |   | 1.81x |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
| **PUGET                ENERGY**                                                                    |
| **STATEMENT                SETTING FORTH COMPUTATIONS OF RATIOS OF**                               |
| **EARNINGS                TO COMBINED FIXED CHARGES AND PREFERRED STOCK                DIVIDENDS** |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|                                                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
| Years                Ended December 31,                                                            |   |   | 2006    |   |   | 2005    |   |   | 2004    |                            |   | 2003 |   |   | 2002 |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Preferred                Dividend Requirements:                                  |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
| Pre-tax                income:                                                                     |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Income                from continuing operations                                 |   | $      | 167,224 |   | $      | 146,282 |   | $      | 125,411 |                            | $      | 119,750 |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |   | 96,270  |   |   | 88,608  |   |   | 76,756  |                            |   | 70,775 |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |   | (3,784  | )      |   | 2,142   |   |   | (17     | )                               |   | (162 | ) |   | 2,082 |   |
| Subtotal                                                                                           |   |   | 259,710 |   |   | 237,032 |   |   | 202,150 |                            |   | 190,363 |   |   | 163,068 |   |
|    Capitalized                interest                                              |   |   | (7,978  | )      |   | (3,800  | )      |   | (2,796  | )                               |   | (2,272 | ) |   | (1,397 | ) |
| Total                                                                                              |   | $      | 251,732 |   | $      | 233,232 |   | $      | 199,354 |                            | $      | 188,091 |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $      | 184,013 |   | $      | 174,682 |   | $      | 172,050 |                            | $      | 182,902 |   | $ | 192,830 |   |
|    Other                interest                                                    |   |   | 7,978   |   |   | 3,800   |   |   | 2,796   |                            |   | 2,272 |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |   | 9,151   |   |   | 5,234   |   |   | 5,424   |                            |   | 4,669 |   |   | 5,394 |   |
| Total                                                                                              |   | $      | 201,142 |   | $      | 183,716 |   | $      | 180,270 |                            | $      | 189,843 |   | $ | 199,621 |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Preferred                Dividend Requirements                                   |   | $      | 452,874 |   | $      | 416,948 |   | $      | 379,624 |                            | $      | 377,934 |   | $ | 361,292 |   |
| Dividend                Requirement:                                                               |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|    Fixed                charges above                                               |   | $      | 201,142 |   | $      | 183,716 |   | $      | 180,270 |                            | $      | 189,843 |   | $ | 199,621 |   |
|    Preferred                dividend requirements below                             |   |   | -       |   |   | -       |   |   | -       |                            |   | 8,189 |   |   | 11,777 |   |
| Total                                                                                              |   | $      | 201,142 |   | $      | 183,716 |   | $      | 180,270 |                            | $      | 198,032 |   | $ | 211,398 |   |
| Ratio                of Earnings to Combined Fixed Charges and                                     |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|                   Preferred Dividends Requirement                                        |   |   | 2.25x   |   |   | 2.27x   |   |   | 2.11x   |                            |   | 1.91x |   |   | 1.71x |   |
| Computation                of Preferred Dividend Requirements:                                     |   |   |    |   |   |    |   |   |    |                            |   |   |   |   |   |   |
|     (a)                Pre-tax income                                          |   | $      | 259,710 |   | $      | 237,032 |   | $      | 202,150 |                            | $      | 190,363 |   | $ | 163,068 |   |
|     (b)                Income from continuing operations                       |   | $      | 167,224 |   | $      | 146,282 |   | $      | 125,411 |                            | $      | 119,750 |   | $ | 108,429 |   |
|     (c)                Ratio of (a) to (b)                                     |   |   | 1.5531  |   |   | 1.6204  |   |   | 1.6119  |                            |   | 1.5897 |   |   | 1.5039 |   |
|     (d)                Preferred dividends                                     |   | $      | -       |   | $      | -       |   | $      | -       |                            | $      | 5,151 |   | $ | 7,831 |   |
|   Preferred                dividend requirements [(d) multiplied by (c)]                 |   | $      | -       |   | $      | -       |   | $      | -       |                            | $      | 8,189 |   | $ | 11,777 |   |