| **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,**        |
|                                                                                                                          |   | **2007** |   |   | **2006** |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |
| Earnings                Available For Fixed Charges:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                income:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income                from continuing operations                                                            |   | $ | 186,349 |   |   | $ | 176,739 |   |   | $ | 146,769 |   |   | $ | 126,192 |   |   | $ | 120,055 |   |   | $ | 108,948 |   |
|    Income                taxes                                                                                 |   |   | 83,660 |   |   |   | 97,227 |   |   |   | 89,628 |   |   |   | 77,176 |   |   |   | 70,939 |   |   |   | 52,836 |   |
|    Income                taxes charged to other income - net                                                   |   |   | 1,204 |   |   |   | 1,462 |   |   |   | 2,141 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
|    Capitalized                interest                                                                         |   |   | (4,270 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                                                         |   | $ | 266,943 |   |   | $ | 267,450 |   |   | $ | 234,738 |   |   | $ | 200,555 |   |   | $ | 188,560 |   |   | $ | 162,469 |   |
| Fixed                charges:                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                                             |   | $ | 209,319 |   |   | $ | 184,859 |   |   | $ | 174,458 |   |   | $ | 171,831 |   |   | $ | 182,779 |   |   | $ | 192,829 |   |
|    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                                                                                                                         |   | $ | 222,466 |   |   | $ | 201,988 |   |   | $ | 183,492 |   |   | $ | 180,051 |   |   | $ | 189,720 |   |   | $ | 199,620 |   |
| Earnings                available for combined fixed charges                                                                  |   | $ | 489,409 |   |   | $ | 469,438 |   |   | $ | 418,230 |   |   | $ | 380,606 |   |   | $ | 378,280 |   |   | $ | 362,089 |   |
| Ratio                of Earnings to Fixed Charges                                                                             |   |   | 2.20x |   |   |   | 2.32x |   |   |   | 2.28x |   |   |   | 2.11x |   |   |   | 1.99x |   |   |   | 1.81x |   |

| **PUGET                SOUND                ENERGY**                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **STATEMENT                SETTING FORTH COMPUTATIONS OF RATIOS                OF**                 |
| **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                                                                                                   |   | $ | 186,349 |   |   | $ | 176,739 |   |   | $ | 146,769 |   |   | $ | 126,192 |   |   | $ | 120,055 |   |   | $ | 108,948 |   |
|    Income                taxes                                                                                                                        |   |   | 83,660 |   |   |   | 97,227 |   |   |   | 89,628 |   |   |   | 77,176 |   |   |   | 70,939 |   |   |   | 52,836 |   |
|    Income                taxes charged to other income - net                                                                                          |   |   | 1,204 |   |   |   | 1,462 |   |   |   | 2,141 |   |   |   | (17 | ) |   |   | (162 | ) |   |   | 2,082 |   |
| Subtotal                                                                                                                                                             |   |   | 271,213 |   |   |   | 275,428 |   |   |   | 238,538 |   |   |   | 203,351 |   |   |   | 190,832 |   |   |   | 163,866 |   |
|    Capitalized                interest                                                                                                                |   |   | (4,270 | ) |   |   | (7,978 | ) |   |   | (3,800 | ) |   |   | (2,796 | ) |   |   | (2,272 | ) |   |   | (1,397 | ) |
| Total                                                                                                                                                                |   | $ | 266,943 |   |   | $ | 267,450 |   |   | $ | 234,738 |   |   | $ | 200,555 |   |   | $ | 188,560 |   |   | $ | 162,469 |   |
| Fixed                charges:                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                                                                                    |   | $ | 209,319 |   |   | $ | 184,859 |   |   | $ | 174,458 |   |   | $ | 171,831 |   |   | $ | 182,779 |   |   | $ | 192,829 |   |
|    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                                                                                                                                                                |   | $ | 222,466 |   |   | $ | 201,988 |   |   | $ | 183,492 |   |   | $ | 180,051 |   |   | $ | 189,720 |   |   | $ | 199,620 |   |
| Earnings                Available for Combined Fixed Charges and                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements                                                                                                     |   | $ | 489,409 |   |   | $ | 469,438 |   |   | $ | 418,230 |   |   | $ | 380,606 |   |   | $ | 378,280 |   |   | $ | 362,089 |   |
| Dividend                Requirement:                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed                charges above                                                                                                                 |   | $ | 222,466 |   |   | $ | 201,988 |   |   | $ | 183,492 |   |   | $ | 180,051 |   |   | $ | 189,720 |   |   | $ | 199,620 |   |
|    Preferred                dividend requirements below                                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,188 |   |   |   | 11,779 |   |
| Total                                                                                                                                                                |   | $ | 222,466 |   |   | $ | 201,988 |   |   | $ | 183,492 |   |   | $ | 180,051 |   |   | $ | 197,908 |   |   | $ | 211,399 |   |
| Ratio                of Earnings to Combined Fixed Charges and                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividends Requirement                                                                                                     |   |   | 2.20x |   |   |   | 2.32x |   |   |   | 2.28x |   |   |   | 2.11x |   |   |   | 1.91x |   |   |   | 1.71x |   |
| Computation                of Preferred Dividend Requirements:                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (a)                Pre-tax income                                                                                                            |   | $ | 271,213 |   |   | $ | 275,428 |   |   | $ | 238,538 |   |   | $ | 203,351 |   |   | $ | 190,832 |   |   | $ | 163,866 |   |
|     (b)                Income from continuing operations                                                                                         |   | $ | 186,349 |   |   | $ | 176,739 |   |   | $ | 146,769 |   |   | $ | 126,192 |   |   | $ | 120,055 |   |   | $ | 108,948 |   |
|     (c)                Ratio of (a) to (b)                                                                                                       |   |   | 1.4554 |   |   |   | 1.5584 |   |   |   | 1.6253 |   |   |   | 1.6114 |   |   |   | 1.5895 |   |   |   | 1.5041 |   |
|     (d)                Preferred dividends                                                                                                       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 5,151 |   |   | $ | 7,831 |   |
|   Preferred                dividend requirements [(d) multiplied by (c)]                                                                                   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 8,188 |   |   | $ | 11,779 |   |