|                                                                                      |   |                             |    |                                        |   |     |   |     |    |     |   | **Exhibit                12.1**  |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------|---------|---------------------------------------------|--------|----------|--------|----------|---------|----------|--------|---------------------------------------|--------|
| **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,** |   |
|                                                                                      |   | **2006**                         |    | **2005**                                    |   | **2004** |   | **2003** |    | **2002** |   | **2001**                              |   |
| Earnings                Available For Fixed Charges:                                      |   |                             |    |                                        |   |     |   |     |    |     |   |                                  |   |
| Pre-tax                income:                                                            |   |                             |    |                                        |   |     |   |     |    |     |   |                                  |   |
|    Income                from continuing operations                        |   | $                                | 166,377 |                                        | $      | 146,282  |   | $        | 125,411 |     | $      | 119,750                               |   | $ | 108,429 |   | $ | 119,069 |   |
|    Income                taxes                                             |   |                             | 97,963  |                                        |   | 88,608   |   |     | 76,756  |     |   | 70,775                                |   |   | 52,557 |   |   | 76,882 |   |
|    Income                taxes charged to other income - net               |   |                             | (2,319  | )                                           |   | 2,142    |   |     | (17     | )        |   | (162                                  | )      |   | 2,082 |   |   | 4,590 |   |
|    Capitalized                interest                                     |   |                             | (6,284  | )                                           |   | (3,800   | )      |     | (2,796  | )        |   | (2,272                                | )      |   | (1,397 | ) |   | (883 | ) |
| Total                                                                                     |   | $                                | 255,737 |                                        | $      | 233,232  |   | $        | 199,354 |     | $      | 188,091                               |   | $ | 161,671 |   | $ | 199,658 |   |
| Fixed                charges:                                                             |   |                             |    |                                        |   |     |   |     |    |     |   |                                  |   |   |   |   |   |   |   |
|    Interest                expense                                         |   | $                                | 178,504 |                                        | $      | 174,682  |   | $        | 172,050 |     | $      | 182,902                               |   | $ | 192,830 |   | $ | 190,849 |   |
|    Other                interest                                           |   |                             | 6,284   |                                        |   | 3,800    |   |     | 2,796   |     |   | 2,272                                 |   |   | 1,397 |   |   | 883 |   |
|    Portion                of rentals representative of the interest factor |   |                             | 8,460   |                                        |   | 5,234    |   |     | 5,424   |     |   | 4,669                                 |   |   | 5,394 |   |   | 5,633 |   |
| Total                                                                                     |   | $                                | 193,248 |                                        | $      | 183,716  |   | $        | 180,270 |     | $      | 189,843                               |   | $ | 199,621 |   | $ | 197,365 |   |
| Earnings                available for combined fixed charges                              |   | $                                | 448,985 |                                        | $      | 416,948  |   | $        | 379,624 |     | $      | 377,934                               |   | $ | 361,292 |   | $ | 397,023 |   |
| Ratio                of Earnings to Fixed Charges                                         |   |                             | 2.32x   |                                        |   | 2.27x    |   |     | 2.11x   |     |   | 1.99x                                 |   |   | 1.81x |   |   | 2.01x |   |

| **PUGET                  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,** |   |
|                                                                                                                                   |   | **2006** |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
| Earnings                  Available for Combined Fixed Charges and    Preferred                  Dividend Requirements: |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                  income:                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income                  from continuing operations                                                                   |   | $ | 166,377 |   | $ | 146,282 |   | $ | 125,411 |   | $ | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   |
|    Income                  taxes                                                                                        |   |   | 97,963 |   |   | 88,608 |   |   | 76,756 |   |   | 70,775 |   |   | 52,557 |   |   | 76,882 |   |
|    Income                  taxes charged to other income - net                                                          |   |   | (2,319 | ) |   | 2,142 |   |   | (17 | ) |   | (162 | ) |   | 2,082 |   |   | 4,590 |   |
| Subtotal                                                                                                                               |   |   | 262,021 |   |   | 237,032 |   |   | 202,150 |   |   | 190,363 |   |   | 163,068 |   |   | 200,541 |   |
|    Capitalized                  interest                                                                                |   |   | (6,284 | ) |   | (3,800 | ) |   | (2,796 | ) |   | (2,272 | ) |   | (1,397 | ) |   | (883 | ) |
| Total                                                                                                                                  |   | $ | 255,737 |   | $ | 233,232 |   | $ | 199,354 |   | $ | 188,091 |   | $ | 161,671 |   | $ | 199,658 |   |
| Fixed                  charges:                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                  expense                                                                                    |   | $ | 178,504 |   | $ | 174,682 |   | $ | 172,050 |   | $ | 182,902 |   | $ | 192,830 |   | $ | 190,849 |   |
|    Other                  interest                                                                                      |   |   | 6,284 |   |   | 3,800 |   |   | 2,796 |   |   | 2,272 |   |   | 1,397 |   |   | 883 |   |
|    Portion                  of rentals representative of the interest factor                                            |   |   | 8,460 |   |   | 5,234 |   |   | 5,424 |   |   | 4,669 |   |   | 5,394 |   |   | 5,633 |   |
| Total                                                                                                                                  |   | $ | 193,248 |   | $ | 183,716 |   | $ | 180,270 |   | $ | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   |
| Earnings                  Available for Combined Fixed Charges and                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                  Dividend Requirements                                                                     |   | $ | 448,985 |   | $ | 416,948 |   | $ | 379,624 |   | $ | 377,934 |   | $ | 361,292 |   | $ | 397,023 |   |
| Dividend                  Requirement:                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed                  charges above                                                                                 |   | $ | 193,248 |   | $ | 183,716 |   | $ | 180,270 |   | $ | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   |
|    Preferred                  dividend requirements below                                                               |   |   | - |   |   | - |   |   | - |   |   | 8,189 |   |   | 11,777 |   |   | 14,169 |   |
| Total                                                                                                                                  |   | $ | 193,248 |   | $ | 183,716 |   | $ | 180,270 |   | $ | 198,032 |   | $ | 211,398 |   | $ | 211,534 |   |
| Ratio                  of Earnings to Combined Fixed Charges and                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Preferred Dividends Requirement                                                                          |   |   | 2.32x |   |   | 2.27x |   |   | 2.11x |   |   | 1.91x |   |   | 1.71x |   |   | 1.88x |   |
| Computation                  of Preferred Dividend Requirements:                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (a)                  Pre-tax income                                                                            |   | $ | 262,021 |   | $ | 237,032 |   | $ | 202,150 |   | $ | 190,363 |   | $ | 163,068 |   | $ | 200,541 |   |
|     (b)                  Income from continuing operations                                                         |   | $ | 166,377 |   | $ | 146,282 |   | $ | 125,411 |   | $ | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   |
|     (c)                  Ratio of (a) to (b)                                                                       |   |   | 1.5749 |   |   | 1.6204 |   |   | 1.6119 |   |   | 1.5897 |   |   | 1.5039 |   |   | 1.6842 |   |
|     (d)                  Preferred dividends                                                                       |   | $ | - |   | $ | - |   | $ | - |   | $ | 5,151 |   | $ | 7,831 |   | $ | 8,413 |   |
|   Preferred                  dividend requirements [(d) multiplied by (c)]                                                   |   | $ | - |   | $ | - |   | $ | - |   | $ | 8,189 |   | $ | 11,777 |   | $ | 14,169 |   |