|                                                                                                   |   |                                |    |   |                                                                                                                                                      |   |    | **Exhibit                  12.1**           |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------|
| **PUGET                  ENERGY**                                                                      |
| **STATEMENT                  SETTING FORTH COMPUTATIONS OF RATIOS OF**                                 |
| **EARNINGS                  TO FIXED CHARGES**                                                         |
| **(Dollars                  in Thousands)**                                                            |
|                                                                                                   |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | **12                  Months**      |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | **Ended**                           |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | **June                  30,**       |    |   | **Years                  Ended December 31,**                                                                |   |
|                                                                                                   |   | **2007**                            |    |   | **2006**                                                                                                                                                  |   |    | **2005**                                                                                      |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |
| Earnings                  Available For Fixed Charges:                                                 |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                  income:                                                                       |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |
|    Income                  from continuing operations                                   |   | $                                   | 190,737 |   |                                                                                                                                                      | $      | 167,224 |                                                                                          |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|    Income                  taxes                                                        |   |                                | 92,992  |   |                                                                                                                                                      |   | 96,270  |                                                                                          |   |   | 88,608 |   |   |   | 76,756 |   |   |   | 70,775 |   |   |   | 52,557 |   |
|    Income                  taxes charged to other income - net                          |   |                                | 1,131   |   |                                                                                                                                                      |   | (3,784  | )                                                                                             |   |   | 2,142 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
|    Capitalized                  interest                                                |   |                                | (5,746  | )      |                                                                                                                                                      |   | (7,978  | )                                                                                             |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                                  |   | $                                   | 279,114 |   |                                                                                                                                                      | $      | 251,732 |                                                                                          |   | $ | 233,232 |   |   | $ | 199,354 |   |   | $ | 188,091 |   |   | $ | 161,671 |   |
| Fixed                  charges:                                                                        |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                  expense                                                    |   | $                                   | 199,191 |   |                                                                                                                                                      | $      | 184,013 |                                                                                          |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |   | $ | 192,830 |   |
|    Other                  interest                                                      |   |                                | 5,746   |   |                                                                                                                                                      |   | 7,978   |                                                                                          |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |   |   | 1,397 |   |
|    Portion                  of rentals representative of the interest factor            |   |                                | 9,027   |   |                                                                                                                                                      |   | 9,151   |                                                                                          |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |   |   | 5,394 |   |
| Total                                                                                                  |   | $                                   | 213,964 |   |                                                                                                                                                      | $      | 201,142 |                                                                                          |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
| Earnings                  available for combined fixed charges                                         |   | $                                   | 493,078 |   |                                                                                                                                                      | $      | 452,874 |                                                                                          |   | $ | 416,948 |   |   | $ | 379,624 |   |   | $ | 377,934 |   |   | $ | 361,292 |   |
| Ratio                  of Earnings to Fixed Charges                                                    |   |                                | 2.30x   |   |                                                                                                                                                      |   | 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)**                                                            |
|                                                                                                   |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | **12                  Months**      |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | **Ended**                           |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |  **June                  30,** |    |   |  **Years                  Ended December 31,**                  |   |
|                                                                                                   |   | **2007**                            |    |   | **2006**                                                                                                                                                  |   |    | **2005**                                                                                      |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |
| Earnings                  Available for Combined Fixed Charges and                                     |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                  Dividend Requirements:                                    |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                  income:                                                                       |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income                  from continuing operations                                   |   | $                                   | 190,737 |   |                                                                                                                                                      | $      | 167,224 |                                                                                          |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|    Income                  taxes                                                        |   |                                | 92,992  |   |                                                                                                                                                      |   | 96,270  |                                                                                          |   |   | 88,608 |   |   |   | 76,756 |   |   |   | 70,775 |   |   |   | 52,557 |   |
|    Income                  taxes charged to other income - net                          |   |                                | 1,131   |   |                                                                                                                                                      |   | (3,784  | )                                                                                             |   |   | 2,142 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
| Subtotal                                                                                               |   |                                | 284,860 |   |                                                                                                                                                      |   | 259,710 |                                                                                          |   |   | 237,032 |   |   |   | 202,150 |   |   |   | 190,363 |   |   |   | 163,068 |   |
|    Capitalized                  interest                                                |   |                                | (5,746  | )      |                                                                                                                                                      |   | (7,978  | )                                                                                             |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                                  |   | $                                   | 279,114 |   |                                                                                                                                                      | $      | 251,732 |                                                                                          |   | $ | 233,232 |   |   | $ | 199,354 |   |   | $ | 188,091 |   |   | $ | 161,671 |   |
| Fixed                  charges:                                                                        |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                  expense                                                    |   | $                                   | 199,191 |   |                                                                                                                                                      | $      | 184,013 |                                                                                          |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |   | $ | 192,830 |   |
|    Other                  interest                                                      |   |                                | 5,746   |   |                                                                                                                                                      |   | 7,978   |                                                                                          |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |   |   | 1,397 |   |
|    Portion                  of rentals representative of the interest factor            |   |                                | 9,027   |   |                                                                                                                                                      |   | 9,151   |                                                                                          |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |   |   | 5,394 |   |
| Total                                                                                                  |   | $                                   | 213,964 |   |                                                                                                                                                      | $      | 201,142 |                                                                                          |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
| Earnings                  Available for Combined Fixed Charges and                                     |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                  Dividend Requirements                                     |   | $                                   | 493,078 |   |                                                                                                                                                      | $      | 452,874 |                                                                                          |   | $ | 416,948 |   |   | $ | 379,624 |   |   | $ | 377,934 |   |   | $ | 361,292 |   |
| Dividend                  Requirement:                                                                 |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed                  charges above                                                 |   | $                                   | 213,964 |   |                                                                                                                                                      | $      | 201,142 |                                                                                          |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
|    Preferred                  dividend requirements below                               |   |                                | -       |   |                                                                                                                                                      |   | -       |                                                                                          |   |   | - |   |   |   | - |   |   |   | 8,189 |   |   |   | 11,777 |   |
| Total                                                                                                  |   | $                                   | 213,964 |   |                                                                                                                                                      | $      | 201,142 |                                                                                          |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 198,032 |   |   | $ | 211,398 |   |
| Ratio                  of Earnings to Combined Fixed Charges and                                       |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Preferred Dividends Requirement                                          |   |                                | 2.30x   |   |                                                                                                                                                      |   | 2.25x   |                                                                                          |   |   | 2.27x |   |   |   | 2.11x |   |   |   | 1.91x |   |   |   | 1.71x |   |
| Computation                  of Preferred Dividend Requirements:                                       |   |                                |    |   |                                                                                                                                                      |   |    |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (a)                  Pre-tax income                                                  |   | $                                   | 284,860 |   |                                                                                                                                                      | $      | 259,710 |                                                                                          |   | $ | 237,032 |   |   | $ | 202,150 |   |   | $ | 190,363 |   |   | $ | 163,068 |   |
|    (b)                  Income from continuing operations                               |   | $                                   | 190,737 |   |                                                                                                                                                      | $      | 167,224 |                                                                                          |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|    (c)                  Ratio of (a) to (b)                                             |   |                                | 1.4935  |   |                                                                                                                                                      |   | 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 |   |