**Exhibit 12-1**

**
PUGET ENERGY

STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF

EARNINGS TO FIXED CHARGES

(Dollars in Thousands)
**
```

                                             12 Months
                                                Ending                    Year Ended December 31,
                                        March 31, 2001        2000         1999         1998        1997         1996
------------------------------------- ----------------- ----------- ------------ ------------ ----------- ------------
EARNINGS AVAILABLE FOR
 FIXED CHARGES
  Pre-tax income:
    Income from continuing
      operations per statement
      of income                               $187,937    $193,831     $185,567     $169,612    $125,698     $167,351
    Federal income taxes                       130,513     128,973      109,164      105,814      44,916      106,876
    Federal income taxes charged
      to other income - net                      2,972       1,411        2,909        3,986      14,807         (784)
    Capitalized interest                          (765)     (1,264)      (3,692)      (1,782)       (360)        (600)
    Undistributed (earnings) or
      losses of less-than-
      fifty-percent-owned
      entities                                      --          --           --           --        (608)         460
------------------------------------- ----------------- ----------- ------------ ------------ ----------- ------------
Total                                         $320,657    $322,951     $293,948     $277,630    $184,453     $273,303
------------------------------------- ----------------- ----------- ------------ ------------ ----------- ------------

  Fixed charges:
    Interest expense                          $186,157    $184,405     $160,966     $146,248    $123,543     $122,635
    Other interest                                 765       1,264        3,692        1,782         360          600
    Portion of rentals
      representative of the
      interest factor                            6,439       5,002        4,575        2,878       3,143        4,187
------------------------------------- ----------------- ----------- ------------ ------------ ----------- ------------
Total                                         $193,361    $190,671     $169,233     $150,908    $127,046     $127,422
------------------------------------- ----------------- ----------- ------------ ------------ ----------- ------------

  Earnings available for
    combined fixed charges                    $514,018    $513,622     $463,181     $428,538    $311,499     $400,725
RATIO OF EARNINGS TO
  FIXED CHARGES                                   2.66       2.69x        2.74x        2.84x       2.45x        3.14x
```

**
PUGET ENERGY

STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF

EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in Thousands)
**
```

                                        12 Months
                                           Ending                       Year Ended December 31,
                                    March 31, 2001         2000         1999         1998         1997         1996
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMBINED
 FIXED CHARGES AND PREFERRED
 DIVIDEND REQUIREMENTS

  Pretax income:
    Income from continuing
      operations per statement
      of income                           $187,937     $193,831     $185,567     $169,612     $125,698     $167,351
    Federal income taxes                   130,513      128,973      109,164      105,814       44,916      106,876
    Federal income taxes charged
      to other income - net                  2,972        1,411        2,909       3,986        14,807         (784)
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
Subtotal                                   321,422      324,215      297,640      279,412      185,421      273,443
  Capitalized interest                        (765)      (1,264)      (3,692)      (1,782)        (360)        (600)
  Undistributed (earnings) or
    losses of less-than-fifty-
    percent-owned entities                      --           --          --             --        (608)         460
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
Total                                     $320,657     $322,951     $293,948     $277,630     $184,453     $273,303
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------

  Fixed charges:
    Interest expense                      $186,157     $184,405     $160,966     $146,248     $123,543     $122,635
    Other interest                             765        1,264        3,692        1,782          360          600
    Portion of rentals
      representative of the
      interest factor                        6,439        5,002        4,575        2,878        3,143        4,187
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
Total                                     $193,361     $190,671     $169,233     $150,908     $127,046     $127,422
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------

Earnings available for
  combined fixed charges
  and preferred dividend
  requirements                            $514,018     $513,622     $463,181     $428,538     $311,499     $400,725

DIVIDEND REQUIREMENT:
  Fixed charges above                     $193,361     $190,671     $169,233     $150,908     $127,046     $127,422
  Preferred dividend
    requirements below                      15,134       15,044       17,747       21,421       26,266       36,242
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
Total                                     $208,495     $205,715     $186,980     $172,329     $153,312     $163,664
---------------------------------- ---------------- ------------ ------------ ------------ ------------ ------------
```

```

                                      12 Months
                                         Ending                     Year Ended December 31,
                                 March 31, 2001        2000         1999         1998        1997         1996
-------------------------------- --------------- ----------- ------------ ------------ ----------- ------------
RATIO OF EARNINGS TO COMBINED
  FIXED CHARGES AND PREFERRED
  DIVIDEND REQUIREMENTS                    2.47        2.50         2.48         2.49        2.03         2.45

COMPUTATION OF PREFERRED
  DIVIDEND REQUIREMENTS:
  (a) Pre-tax income                   $321,422    $324,215     $297,640     $279,412   $185, 421     $273,443
  (b) Income from continuing
        operations                     $187,937    $193,831     $185,567     $169,612    $125,698     $167,351
  (c) Ratio of (a) to (b)                1.7103      1.6727       1.6039       1.6474      1.4751       1.6339
  (d) Preferred dividends               $ 8,849     $ 8,994     $ 11,065     $ 13,003    $ 17,806     $ 22,181
  Preferred dividend
    requirements
      [(d) multiplied by (c)]           $15,134    $ 15,044     $ 17,747     $ 21,421    $ 26,266     $ 36,242
```