| **Exhibit                12.1**                                 |
|----------------------------------------------------------------------------------------------------|
| **PUGET                ENERGY**                                                                    |
| **STATEMENT                SETTING FORTH COMPUTATIONS OF RATIOS OF**                               |
| **EARNINGS                TO FIXED CHARGES**                                                       |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **12                Months** |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **Ended** |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **September                30,** |   |   | **Years                Ended December 31,**       |   |
|                                                                                               |   | **2007** |   |   | **2006** |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |
| Earnings                Available For Fixed Charges:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                income:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income                from continuing operations                                 |   | $ | 186,435 |   |   | $ | 167,224 |   |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |   | 81,701 |   |   |   | 96,270 |   |   |   | 88,608 |   |   |   | 76,756 |   |   |   | 70,775 |   |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |   | 1,204 |   |   |   | (3,784 | ) |   |   | 2,142 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
|    Capitalized                interest                                              |   |   | (4,270 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                              |   | $ | 265,070 |   |   | $ | 251,732 |   |   | $ | 233,232 |   |   | $ | 199,354 |   |   | $ | 188,091 |   |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $ | 207,949 |   |   | $ | 184,013 |   |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |   | $ | 192,830 |   |
|    Other                interest                                                    |   |   | 4,270 |   |   |   | 7,978 |   |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |   | 8,877 |   |   |   | 9,151 |   |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |   |   | 5,394 |   |
| Total                                                                                              |   | $ | 221,096 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
| Earnings                available for combined fixed charges                                       |   | $ | 486,166 |   |   | $ | 452,874 |   |   | $ | 416,948 |   |   | $ | 379,624 |   |   | $ | 377,934 |   |   | $ | 361,292 |   |
| Ratio                of Earnings to Fixed Charges                                                  |   |   | 2.20x |   |   |   | 2.25x |   |   |   | 2.27x |   |   |   | 2.11x |   |   |   | 1.99x |   |   |   | 1.81x |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PUGET                ENERGY**                                                                    |
| **EARNINGS                TO COMBINED FIXED CHARGES AND PREFERRED STOCK                DIVIDENDS** |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **12                Months** |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **Ended** |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | **September                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                                 |   | $ | 186,435 |   |   | $ | 167,224 |   |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |   | 81,701 |   |   |   | 96,270 |   |   |   | 88,608 |   |   |   | 76,756 |   |   |   | 70,775 |   |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |   | 1,204 |   |   |   | (3,784 | ) |   |   | 2,142 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
| Subtotal                                                                                           |   |   | 269,340 |   |   |   | 259,710 |   |   |   | 237,032 |   |   |   | 202,150 |   |   |   | 190,363 |   |   |   | 163,068 |   |
|    Capitalized                interest                                              |   |   | (4,270 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                              |   | $ | 265,070 |   |   | $ | 251,732 |   |   | $ | 233,232 |   |   | $ | 199,354 |   |   | $ | 188,091 |   |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $ | 207,949 |   |   | $ | 184,013 |   |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |   | $ | 192,830 |   |
|    Other                interest                                                    |   |   | 4,270 |   |   |   | 7,978 |   |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |   | 8,877 |   |   |   | 9,151 |   |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |   |   | 5,394 |   |
| Total                                                                                              |   | $ | 221,096 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements                                   |   | $ | 486,166 |   |   | $ | 452,874 |   |   | $ | 416,948 |   |   | $ | 379,624 |   |   | $ | 377,934 |   |   | $ | 361,292 |   |
| Dividend                Requirement:                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed                charges above                                               |   | $ | 221,096 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |   | $ | 199,621 |   |
|    Preferred                dividend requirements below                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,189 |   |   |   | 11,777 |   |
| Total                                                                                              |   | $ | 221,096 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 198,032 |   |   | $ | 211,398 |   |
| Ratio                of Earnings to Combined Fixed Charges and                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividends Requirement                                   |   |   | 2.20x |   |   |   | 2.25x |   |   |   | 2.27x |   |   |   | 2.11x |   |   |   | 1.91x |   |   |   | 1.71x |   |
| Computation                of Preferred Dividend Requirements:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (a)                Pre-tax income                                          |   | $ | 269,340 |   |   | $ | 259,710 |   |   | $ | 237,032 |   |   | $ | 202,150 |   |   | $ | 190,363 |   |   | $ | 163,068 |   |
|     (b)                Income from continuing operations                       |   | $ | 186,435 |   |   | $ | 167,224 |   |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 119,750 |   |   | $ | 108,429 |   |
|     (c)                Ratio of (a) to (b)                                     |   |   | 1.4447 |   |   |   | 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 |   |