Exhibit 12.1

PUGET ENERGY, INC.
                            STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF
                            EARNINGS TO COMBINED FIXED CHARGES AND DIVIDEND REQUIREMENTS
                                (Dollars in Thousands)

|EARNINGS AVAILABLE FOR COMBINED FIXED | 12 MonthsEndingJune |  | Year Ended December 31
|------------------------------------- | ------------------- |  | ----------------------

|CHARGES AND PREFERRED DIVIDENDREQUIREMENTS | 2002 |  | 2001 |  | 2000 |  | 1999 |  | 1998 |  | 1997
|------------------------------------------ | ---- |  | ---- |  | ---- |  | ---- |  | ---- |  | ----

|Pre-tax Income: | 
|--------------- | 

|Net income per statement of income | 72,923 |  | 121,587 |  | 193,831 |  | 185,567 |  | 169,612 |  | 125,698 | 
|---------------------------------- | ------ |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Federal income taxes | 45,214 |  | 78,006 |  | 128,973 |  | 109,164 |  | 105,814 |  | 44,916 | 
|-------------------- | ------ |  | ------ |  | ------- |  | ------- |  | ------- |  | ------ | 

|Federal income taxes charged to
    other income-net | 5,116 |  | 4,590 |  | 1,411 |  | 2,909 |  | 3,986 |  | 14,807 | 
|---------------------------------------------------- | ----- |  | ----- |  | ----- |  | ----- |  | ----- |  | ------ | 

| | Subtotal | 123,253 |  | 204,183 |  | 324,215 |  | 297,640 |  | 279,412 |  | 185,421 | 
| | -------- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Capitalized Interest | (1,198) |  | (883) |  | (1,264) |  | (3,692) |  | (1,782) |  | (360) | 
|-------------------- | ------- |  | ----- |  | ------- |  | ------- |  | ------- |  | ----- | 

|Undistributed (earnings) or losses
    of less-than-fify-percent-owned
    entities | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | (680) | 
|----------------------------------------------------------------------------------- | - |  | - |  | - |  | - |  | - |  | ----- | 

| | Total | 122,055 |  | 203,300 |  | 322,951 |  | 293,948 |  | 277,630 |  | 184,453 | 
| | ----- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Fixed Charges: | 
|-------------- | 

|Interest on long-term debt | 197,926 |  | 194,505 |  | 184,405 |  | 160,966 |  | 146,248 |  | 123,543 | 
|-------------------------- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Other interest | 1,198 |  | 883 |  | 1,264 |  | 3,692 |  | 1,782 |  | 360 | 
|-------------- | ----- |  | --- |  | ----- |  | ----- |  | ----- |  | --- | 

|Portion of rentals representative of
    the interest factor | 8,207 |  | 7,379 |  | 5,002 |  | 4,575 |  | 2,878 |  | 3,143 | 
|------------------------------------------------------------ | ----- |  | ----- |  | ----- |  | ----- |  | ----- |  | ----- | 

| | Total | 207,331 |  | 202,767 |  | 190,671 |  | 169,233 |  | 150,908 |  | 127,046 | 
| | ----- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Earnings Available for combined Fixed Charges
and Preferred Dividend requirements | 329,386 |  | 406,067 |  | 513,622 |  | 463,181 |  | 428,538 |  | 311,499 | 
|--------------------------------------------------------------------------------- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Ratio of earnings to fixed charges | 1.59 |  | 2.00 |  | 2.69 |  | 2.74 |  | 2.84 |  | 2.45 | 
|---------------------------------- | ---- |  | ---- |  | ---- |  | ---- |  | ---- |  | ---- | 

|COMBINED FIXED CHARGES AND PREFERREDDIVIDEND REQUIREMENTS: | 
|---------------------------------------------------------- | 

|Fixed charges above | 207,311 |  | 202,767 |  | 190,671 |  | 160,233 |  | 150,908 |  | 127,046 | 
|------------------- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Preferred dividend requirements below | 13,728 |  | 14,128 |  | 15,044 |  | 17,747 |  | 21,421 |  | 26,266 | 
|------------------------------------- | ------ |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ | 

| | Total | 221,059 |  | 216,895 |  | 205,715 |  | 186,980 |  | 172,329 |  | 153,312 | 
| | ----- | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|Ratio of earnings to combined fixed charges
and preferred dividend requirements | 1.49 |  | 1.87 |  | 2.50 |  | 2.48 |  | 2.49 |  | 2.03 | 
|------------------------------------------------------------------------------- | ---- |  | ---- |  | ---- |  | ---- |  | ---- |  | ---- | 

|COMPUTATION OF PREFERRED DIVIDEND REQUIREMENTS: | 
|----------------------------------------------- | 

|(a) Pre-tax income | 123,253 |  | 204,183 |  | 324,215 |  | 297,640 |  | 279,412 |  | 185,421 | 
|------------------ | ------- |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|(b) Net income | 72,923 |  | 121,587 |  | 193,831 |  | 185,567 |  | 169,612 |  | 125,698 | 
|-------------- | ------ |  | ------- |  | ------- |  | ------- |  | ------- |  | ------- | 

|(c) Ratio of (a) to (b) | 1.6902 |  | 1.6793 |  | 1.6727 |  | 1.6039 |  | 1.6474 |  | 1.4751 | 
|----------------------- | ------ |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ | 

|(d) Preferred dividends | 8,122 |  | 8,413 |  | 8,994 |  | 11,065 |  | 13,003 |  | 17,806 | 
|----------------------- | ----- |  | ----- |  | ----- |  | ------ |  | ------ |  | ------ | 

|Preferred dividend requirements | 
|------------------------------- | 

|[(d) multiplied by (c)] | 13,728 |  | 14,128 |  | 15,044 |  | 17,747 |  | 21,421 |  | 26,266 | 
|----------------------- | ------ |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ |