**Exhibit
      12.1****PUGET
      ENERGY****STATEMENT
      SETTING FORTH COMPUTATIONS OF RATIOS OF****EARNINGS
      TO FIXED CHARGES****(Dollars
      in Thousands)****12
      Months****Ended****December
      31,**
    
    **Years
      Ended December 31,****2004**
    
    **2003**
    
    **2002**
    
    **2001**
    
    **2000**
    
    **1999**Earnings
      Available For Fixed Charges:Pre-tax
      income:Income
      from continuing operations
    $
    47,954
    
    $
    121,694
    
    $
    118,750
    
    $
    121,588
    
    $
    193,831
    
    $
    185,567Income
      taxes
    
    74,963
    
    
    72,369
    
    
    59,260
    
    
    79,838
    
    
    129,823
    
    
    109,164Income
      taxes charged to other income - net
    
    (55
    )
    
    (150
    )
    
    2,212
    
    
    4,590
    
    
    1,411
    
    
    2,909Capitalized
      interest
    
    (2,796
    )
    
    (2,272
    )
    
    (1,397
    )
    
    (833
    )
    
    (1,264
    )
    
    (3,692
    )Total
    $
    120,066
    
    $
    191,641
    
    $
    178,825
    
    $
    205,133
    
    $
    323,801
    
    $
    293,948Fixed
      charges:Interest
      expense
    $
    178,510
    
    $
    188,387
    
    $
    198,346
    
    $
    194,505
    
    $
    184,405
    
    $
    160,966Other
      interest
    
    2,796
    
    
    2,272
    
    
    1,397
    
    
    883
    
    
    1,264
    
    
    3,692Portion
      of rentals representative of the interest factor
    
    8,135
    
    
    7,183
    
    
    7,458
    
    
    7,379
    
    
    5,002
    
    
    4,575Total
    $
    189,441
    
    $
    197,842
    
    $
    207,201
    
    $
    202,767
    
    $
    190,671
    
    $
    169,233Earnings
      available for combined fixed charges
    $
    309,507
    
    $
    389,483
    
    $
    386,026
    
    $
    407,900
    
    $
    514,472
    
    $
    463,181Ratio
      of Earnings to Fixed Charges
    
    1.63x
    
    
    1.97x
    
    
    1.86x
    
    
    2.01x
    
    
    2.70x
    
    
    2.74x
  **PUGET
      ENERGY****STATEMENT
      SETTING FORTH COMPUTATIONS OF RATIOS OF****EARNINGS
      TO COMBINED FIXED CHARGES AND PREFERRED STOCK
      DIVIDENDS****(Dollars
      in Thousands)****12
      Months****Ended****December
      31,**
    
    **Years
      Ended December 31,****2004**
    
    **2003**
    
    **2002**
    
    **2001**
    
    **2000**
    
    **1999**Earnings
      Available for Combined Fixed Charges andPreferred
      Dividend Requirements:Pre-tax
      income:Income
      from continuing operations
    $
    47,954
    
    $
    121,694
    
    $
    118,750
    
    $
    121,588
    
    $
    193,831
    
    $
    185,567Income
      taxes
    
    74,963
    
    
    72,369
    
    
    59,260
    
    
    79,838
    
    
    129,823
    
    
    109,164Income
      taxes charged to other income - net
    
    (55
    )
    
    (150
    )
    
    2,212
    
    
    4,590
    
    
    1,411
    
    
    2,909Subtotal
    
    122,862
    
    
    193,913
    
    
    180,222
    
    
    206,016
    
    
    325,065
    
    
    297,640Capitalized
      interest
    
    (2,796
    )
    
    (2,272
    )
    
    (1,397
    )
    
    (883
    )
    
    (1,264
    )
    
    (3,692
    )Total
    $
    120,066
    
    $
    191,641
    
    $
    178,825
    
    $
    205,133
    
    $
    323,801
    
    $
    293,948Fixed
      charges:Interest
      expense
    $
    178,510
    
    $
    188,387
    
    $
    198,346
    
    $
    194,505
    
    $
    184,405
    
    $
    160,966Other
      interest
    
    2,796
    
    
    2,272
    
    
    1,397
    
    
    883
    
    
    1,264
    
    
    3,692Portion
      of rentals representative of the interest factor
    
    8,135
    
    
    7,183
    
    
    7,458
    
    
    7,379
    
    
    5,002
    
    
    4,575Total
    $
    189,441
    
    $
    197,842
    
    $
    207,201
    
    $
    202,767
    
    $
    190,671
    
    $
    169,233Earnings
      Available for Combined Fixed Charges andPreferred
      Dividend Requirements
    $
    309,507
    
    $
    389,483
    
    $
    386,026
    
    $
    407,900
    
    $
    514,472
    
    $
    463,181Dividend
      Requirement:Fixed
      charges above
    $
    189,441
    
    $
    197,842
    
    $
    207,201
    
    $
    202,767
    
    $
    190,671
    
    $
    169,233Preferred
      dividend requirements below
    
    -
    
    
    8,208
    
    
    11,885
    
    
    14,255
    
    
    15,084
    
    
    17,747Total
    $
    189,441
    
    $
    206,050
    
    $
    219,086
    
    $
    217,022
    
    $
    205,755
    
    $
    186,980Ratio
      of Earnings to Combined Fixed Charges andPreferred
      Dividends Requirement
    
    1.63x
    
    
    1.89x
    
    
    1.76x
    
    
    1.88x
    
    
    2.50x
    
    
    2.48xComputation
      of Preferred Dividend Requirements:(a)
      Pre-tax income
    $
    122,862
    
    $
    193,913
    
    $
    180,222
    
    $
    206,016
    
    $
    325,065
    
    $
    297,640(b)
      Income from continuing operations
    $
    47,954
    
    $
    121,694
    
    $
    118,750
    
    $
    121,588
    
    $
    193,831
    
    $
    185,567(c)
      Ratio of (a) to (b)
    
    2.5621
    
    
    1.5934
    
    
    1.5177
    
    
    1.6944
    
    
    1.6771
    
    
    1.6039(d)
      Preferred dividends
    $
    -
    
    $
    5,151
    
    $
    7,831
    
    $
    8,413
    
    $
    8,994
    
    $
    11,065Preferred
      dividend requirements [(d) multiplied by (c)]
    $
    -
    
    $
    8,208
    
    $
    11,885
    
    $
    14,255
    
    $
    15,084
    
    $
    17,747