| PUGET SOUND ENERGY                                                         |   |
|----------------------------------------------------------------------------|--------|
| STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF                          |   |
| EARNINGS TO FIXED CHARGES                                                  |   |
| (Dollars in Thousands)                                                     |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | Years Ended December 31, |   |
|                                                                       |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Earnings Available For Fixed Charges:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax income:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income from continuing operations before income taxes    |   | $ | 26,217 |   |   | $ | 226,896 |   |   | $ | 223,618 |   |   | $ | 265,308 |   |   | $ | 275,339 |   |
|    AFUDC - equity                                           |   |   | (12,677 | ) |   |   | (4,177 | ) |   |   | (2,627 | ) |   |   | (1,351 | ) |   |   | (7,978 | ) |
|    AFUDC - debt                                             |   |   | (14,157 | ) |   |   | (9,215 | ) |   |   | (8,610 | ) |   |   | (12,614 | ) |   |   | (15,874 | ) |
| Total                                                                      |   | $ | (617 | ) |   | $ | 213,504 |   |   | $ | 212,381 |   |   | $ | 251,342 |   |   | $ | 251,487 |   |
| Fixed charges:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest expense                                         |   | $ | 235,011 |   |   | $ | 211,742 |   |   | $ | 203,402 |   |   | $ | 219,120 |   |   | $ | 184,859 |   |
|    Other interest                                           |   |   | 12,677 |   |   |   | 4,177 |   |   |   | 2,627 |   |   |   | 1,351 |   |   |   | 7,978 |   |
|    Portion of rentals representative of the interest factor |   |   | 5,391 |   |   |   | 10,212 |   |   |   | 11,775 |   |   |   | 9,199 |   |   |   | 9,151 |   |
| Total                                                                      |   | $ | 253,079 |   |   | $ | 226,131 |   |   | $ | 217,804 |   |   | $ | 229,670 |   |   | $ | 201,988 |   |
| Earnings available for combined fixed charges                              |   | $ | 252,462 |   |   | $ | 439,635 |   |   | $ | 430,185 |   |   | $ | 481,012 |   |   | $ | 453,475 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                         |   |   | 1.00 | x |   |   | 1.94 | x |   |   | 1.98 | x |   |   | 2.09 | x |   |   | 2.25 | x |