| 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, |
|                                                                            |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Earnings      Available For Fixed Charges:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax      income:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      from continuing operations before income taxes    |   | $ | 230,270 |   |   | $ | 257,258 |   |   | $ | 259,710 |   |   | $ | 232,323 |   |   | $ | 199,331 |   |   | $ | 185,427 |   |
|    AFUDC      - equity                                           |   |   | (2,409 | ) |   |   | (1,351 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |
|    AFUDC      - debt                                             |   |   | (10,077 | ) |   |   | (12,614 | ) |   |   | (15,874 | ) |   |   | (9,493 | ) |   |   | (5,420 | ) |   |   | (3,343 | ) |
| Total                                                                           |   | $ | 217,784 |   |   | $ | 243,293 |   |   | $ | 235,858 |   |   | $ | 219,030 |   |   | $ | 191,115 |   |   | $ | 179,812 |   |
| Fixed      charges:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                         |   | $ | 210,012 |   |   | $ | 217,823 |   |   | $ | 184,013 |   |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |
|    Other      interest                                           |   |   | 2,409 |   |   |   | 1,351 |   |   |   | 7,978 |   |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |
|    Portion      of rentals representative of the interest factor |   |   | 10,232 |   |   |   | 9,199 |   |   |   | 9,151 |   |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |
| Total                                                                           |   | $ | 222,653 |   |   | $ | 228,373 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |
| Earnings      available for combined fixed charges                              |   | $ | 440,437 |   |   | $ | 471,666 |   |   | $ | 437,000 |   |   | $ | 402,746 |   |   | $ | 371,385 |   |   | $ | 369,655 |   |
| Ratio      of Earnings to Fixed Charges                                         |   |   | 1.98 | x |   |   | 2.07 | x |   |   | 2.17 | x |   |   | 2.19 | x |   |   | 2.06 | x |   |   | 1.95 | x |

| PUGET      ENERGY                                                               |
|---------------------------------------------------------------------------------|
| EARNINGS      TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS           |
| (Dollars      in Thousands)                                                     |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | 12      Months |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Ended |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | September      30, |   | Years      Ended December 31, |
|                                                                            |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Earnings      Available for Combined Fixed Charges                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         and Preferred Dividend Requirements:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax      income:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      from continuing operations before income taxes    |   | $ | 230,270 |   |   | $ | 257,258 |   |   | $ | 259,710 |   |   | $ | 232,323 |   |   | $ | 199,331 |   |   | $ | 185,427 |   |
|    AFUDC      - equity                                           |   |   | (2,409 | ) |   |   | (1,351 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |
|    AFUDC      - debt                                             |   |   | (10,077 | ) |   |   | (12,614 | ) |   |   | (15,874 | ) |   |   | (9,493 | ) |   |   | (5,420 | ) |   |   | (3,343 | ) |
| Total                                                                           |   | $ | 217,784 |   |   | $ | 243,293 |   |   | $ | 235,858 |   |   | $ | 219,030 |   |   | $ | 191,115 |   |   | $ | 179,812 |   |
| Fixed      charges:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                         |   | $ | 210,012 |   |   | $ | 217,823 |   |   | $ | 184,013 |   |   | $ | 174,682 |   |   | $ | 172,050 |   |   | $ | 182,902 |   |
|    Other      interest                                           |   |   | 2,409 |   |   |   | 1,351 |   |   |   | 7,978 |   |   |   | 3,800 |   |   |   | 2,796 |   |   |   | 2,272 |   |
|    Portion      of rentals representative of the interest factor |   |   | 10,232 |   |   |   | 9,199 |   |   |   | 9,151 |   |   |   | 5,234 |   |   |   | 5,424 |   |   |   | 4,669 |   |
| Total                                                                           |   | $ | 222,653 |   |   | $ | 228,373 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |
| Earnings      Available for Combined Fixed Charges and                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred      Dividend Requirements                          |   | $ | 440,437 |   |   | $ | 471,666 |   |   | $ | 437,000 |   |   | $ | 402,746 |   |   | $ | 371,385 |   |   | $ | 369,655 |   |
| Dividend      Requirement:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed      charges above                                      |   | $ | 222,653 |   |   | $ | 228,373 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 189,843 |   |
|    Preferred      dividend requirements below                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,335 |   |
| Total                                                                           |   | $ | 222,653 |   |   | $ | 228,373 |   |   | $ | 201,142 |   |   | $ | 183,716 |   |   | $ | 180,270 |   |   | $ | 198,178 |   |
| Ratio      of Earnings to Combined Fixed Charges and                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      Dividends Requirement                                            |   |   | 1.98 | x |   |   | 2.07 | x |   |   | 2.17 | x |   |   | 2.19 | x |   |   | 2.06 | x |   |   | 1.87 | x |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computation      of Preferred Dividend Requirements:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          (a) Income from continuing operations before            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                income taxes             | $ | 230,270 |   |   | $ | 257,258 |   |   | $ | 259,710 |   |   | $ | 232,323 |   |   | $ | 199,331 |   |   | $ | 185,427 |   |
|     (b)      Net income before extraordinary items          |   | $ | 160,640 |   |   | $ | 184,676 |   |   | $ | 167,224 |   |   | $ | 146,282 |   |   | $ | 125,411 |   |   | $ | 114,599 |   |
|     (c)      Ratio of (a) to (b)                            |   |   | 1.4335 |   |   |   | 1.3930 |   |   |   | 1.5531 |   |   |   | 1.5882 |   |   |   | 1.5894 |   |   |   | 1.6181 |   |
|     (d)      Preferred dividends                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 5,151 |   |
|   Preferred      dividend requirements [(d) multiplied by (c)]        |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 8,335 |   |