| PUGET SOUND ENERGY                                                                                                                                                                                                                                                                                                  |                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF                                                                                                                                                                                                                                                                   |                |
| EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                           |                |
| (Dollars in Thousands)                                                                                                                                                                                                                                                                                              |                |
|                                                                                                                                                                                                                                                                                                                |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                | 12 Months           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                | Ended               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                |  September 30, |   |   Years Ended December 31, |
|                                                                                                                                                                                                                                                                                                                | 2010                |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Earnings Available For Fixed Charges:                                                                                                                                                                                                                                                                               |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax income:                                                                                                                                                                                                                                                                                                     |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income from continuing operations before income taxes                                                                                                                                                                                                                                             | $                   | (76,855 | ) |   | $ | 226,896 |   |   | $ | 223,618 |   |   | $ | 265,308 |   |   | $ | 275,339 |   |   | $ | 233,900 |   |
|    AFUDC - equity                                                                                                                                                                                                                                                                                    |                | (10,213 | ) |   |   | (4,177 | ) |   |   | (2,627 | ) |   |   | (1,351 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |
|    AFUDC - debt                                                                                                                                                                                                                                                                                      |                | (12,485 | ) |   |   | (9,214 | ) |   |   | (8,610 | ) |   |   | (12,614 | ) |   |   | (15,874 | ) |   |   | (9,493 | ) |
| Total                                                                                                                                                                                                                                                                                                               | $                   | (99,553 | ) |   | $ | 213,505 |   |   | $ | 212,381 |   |   | $ | 251,342 |   |   | $ | 251,487 |   |   | $ | 220,607 |   |
| Fixed charges:                                                                                                                                                                                                                                                                                                      |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest expense                                                                                                                                                                                                                                                                                  | $                   | 231,726 |   |   | $ | 211,742 |   |   | $ | 203,402 |   |   | $ | 219,120 |   |   | $ | 184,859 |   |   | $ | 174,458 |   |
|    Other interest                                                                                                                                                                                                                                                                                    |                | 10,213 |   |   |   | 4,177 |   |   |   | 2,627 |   |   |   | 1,351 |   |   |   | 7,978 |   |   |   | 3,800 |   |
|    Portion of rentals representative of the interest factor                                                                                                                                                                                                                                          |                | 7,239 |   |   |   | 10,212 |   |   |   | 11,775 |   |   |   | 9,199 |   |   |   | 9,151 |   |   |   | 5,234 |   |
| Total                                                                                                                                                                                                                                                                                                               | $                   | 249,178 |   |   | $ | 226,131 |   |   | $ | 217,804 |   |   | $ | 229,670 |   |   | $ | 201,988 |   |   | $ | 183,492 |   |
| Earnings available for combined fixed charges                                                                                                                                                                                                                                                                       | $                   | 149,625 |   |   | $ | 439,636 |   |   | $ | 430,185 |   |   | $ | 481,012 |   |   | $ | 453,475 |   |   | $ | 404,099 |   |
|                                                                                                                                                                                                                                                                                                                |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                  |                | -- | 1 |   |   | 1.94 | x |   |   | 1.98 | x |   |   | 2.09 | x |   |   | 2.25 | x |   |   | 2.20 | x |
|                                                                                                                                                                                                                                                                                                                |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1) The ratio of earnings to fixed charges was less than 1:1 for the twelve months ended September 30, 2010 due to the unrealized loss on derivative instruments of $234.2 million during the same period. Additional earnings of $99.6 million would have been needed to achieve a coverage ratio of 1:1. |                |