|                                                                                        |                           |    |                                          |   |     |   | **Exhibit                  12.1** |
|---------------------------------------------------------------------------------------------|--------------------------------|---------|-----------------------------------------------|--------|----------|--------|-----------------------------------|
| **PUGET                  ENERGY**                                                           |
| **STATEMENT                  SETTING FORTH COMPUTATIONS OF RATIOS OF**                      |
| **EARNINGS                  TO FIXED CHARGES**                                              |
| **(Dollars                  in Thousands)**                                                 |
|                                                                                        | **12                  Months** |    |                                          |   |     |   |                              |   |   |   |   |   |
|                                                                                        | **Ended**                      |    |                                          |   |     |   |                              |   |   |   |   |   |
|                                                                                        | **June                  30,**  |    | **Years                  Ended December 31,** |
|                                                                                        | **2005**                       |    | **2004**                                      |   | **2003** |   | **2002**                          |   | **2001** |   | **2000** |   |
| Earnings                  Available For Fixed Charges:                                      |                           |    |                                          |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                  income:                                                            |                           |    |                                          |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|    Income                  from continuing operations                        | $                              | 152,448 |                                          | $      | 125,411  |   | $                                 | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   | $ | 194,374 |   |
|    Income                  taxes                                             |                           | 95,266  |                                          |   | 76,756   |   |                              | 70,775 |   |   | 52,557 |   |   | 76,882 |   |   | 129,407 |   |
|    Income                  taxes charged to other income - net               |                           | 1,074   |                                          |   | (17      | )      |                              | (162 | ) |   | 2,082 |   |   | 4,590 |   |   | 1,411 |   |
|    Capitalized                  interest                                     |                           | (3,337  | )                                             |   | (2,796   | )      |                              | (2,272 | ) |   | (1,397 | ) |   | (883 | ) |   | (1,264 | ) |
| Total                                                                                       | $                              | 245,451 |                                          | $      | 199,354  |   | $                                 | 188,091 |   | $ | 161,671 |   | $ | 199,658 |   | $ | 323,928 |   |
| Fixed                  charges:                                                             |                           |    |                                          |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                  expense                                         | $                              | 170,620 |                                          | $      | 172,050  |   | $                                 | 182,902 |   | $ | 192,830 |   | $ | 190,849 |   | $ | 184,217 |   |
|    Other                  interest                                           |                           | 3,337   |                                          |   | 2,796    |   |                              | 2,272 |   |   | 1,397 |   |   | 883 |   |   | 1,264 |   |
|    Portion                  of rentals representative of the interest factor |                           | 5,824   |                                          |   | 5,424    |   |                              | 4,669 |   |   | 5,394 |   |   | 5,633 |   |   | 5,002 |   |
| Total                                                                                       | $                              | 179,781 |                                          | $      | 180,270  |   | $                                 | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   | $ | 190,483 |   |
| Earnings                  available for combined fixed charges                              | $                              | 425,232 |                                          | $      | 379,624  |   | $                                 | 377,934 |   | $ | 361,292 |   | $ | 397,023 |   | $ | 514,411 |   |
| Ratio                  of Earnings to Fixed Charges                                         |                           | 2.37x   |                                          |   | 2.11x    |   |                              | 1.99x |   |   | 1.81x |   |   | 2.01x |   |   | 2.70x |   |

| **PUGET                  ENERGY**                                                                      |                           |
|--------------------------------------------------------------------------------------------------------|--------------------------------|
| **STATEMENT                  SETTING FORTH COMPUTATIONS OF RATIOS OF**                                 |                           |
| **EARNINGS                  TO COMBINED FIXED CHARGES AND PREFERRED STOCK                  DIVIDENDS** |                           |
| **(Dollars                  in Thousands)**                                                            |                           |
|                                                                                                   | **12                  Months** |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   | **Ended**                      |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   | **June                  30,**  |   | **Years                  Ended December 31,** |
|                                                                                                   | **2005**                       |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   | **2000** |   |
| Earnings                  Available for Combined Fixed Charges and                                     |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                  Dividend Requirements:                                    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax                  income:                                                                       |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income                  from continuing operations                                   | $                              | 152,448 |   | $ | 125,411 |   | $ | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   | $ | 194,374 |   |
|    Income                  taxes                                                        |                           | 95,266 |   |   | 76,756 |   |   | 70,775 |   |   | 52,557 |   |   | 76,882 |   |   | 129,407 |   |
|    Income                  taxes charged to other income - net                          |                           | 1,074 |   |   | (17 | ) |   | (162 | ) |   | 2,082 |   |   | 4,590 |   |   | 1,411 |   |
| Subtotal                                                                                               |                           | 248,788 |   |   | 202,150 |   |   | 190,363 |   |   | 163,068 |   |   | 200,541 |   |   | 325,192 |   |
|    Capitalized                  interest                                                |                           | (3,337 | ) |   | (2,796 | ) |   | (2,272 | ) |   | (1,397 | ) |   | (883 | ) |   | (1,264 | ) |
| Total                                                                                                  | $                              | 245,451 |   | $ | 199,354 |   | $ | 188,091 |   | $ | 161,671 |   | $ | 199,658 |   | $ | 323,928 |   |
| Fixed                  charges:                                                                        |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                  expense                                                    | $                              | 170,620 |   | $ | 172,050 |   | $ | 182,902 |   | $ | 192,830 |   | $ | 190,849 |   | $ | 184,217 |   |
|    Other                  interest                                                      |                           | 3,337 |   |   | 2,796 |   |   | 2,272 |   |   | 1,397 |   |   | 883 |   |   | 1,264 |   |
|    Portion                  of rentals representative of the interest factor            |                           | 5,824 |   |   | 5,424 |   |   | 4,669 |   |   | 5,394 |   |   | 5,633 |   |   | 5,002 |   |
| Total                                                                                                  | $                              | 179,781 |   | $ | 180,270 |   | $ | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   | $ | 190,483 |   |
| Earnings                  Available for Combined Fixed Charges and                                     |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred                  Dividend Requirements                                     | $                              | 425,232 |   | $ | 379,624 |   | $ | 377,934 |   | $ | 361,292 |   | $ | 397,023 |   | $ | 514,411 |   |
| Dividend                  Requirement:                                                                 |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Fixed                  charges above                                                 | $                              | 179,781 |   | $ | 180,270 |   | $ | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   | $ | 190,483 |   |
|    Preferred                  dividend requirements below                               |                           | - |   |   | - |   |   | 8,189 |   |   | 11,777 |   |   | 14,169 |   |   | 15,047 |   |
| Total                                                                                                  | $                              | 179,781 |   | $ | 180,270 |   | $ | 198,032 |   | $ | 211,398 |   | $ | 211,534 |   | $ | 205,530 |   |
| Ratio                  of Earnings to Combined Fixed Charges and                                       |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  Dividends Requirement                                                       |                           | 2.37x |   |   | 2.11x |   |   | 1.91x |   |   | 1.71x |   |   | 1.88x |   |   | 2.50x |   |
|                                                                                                   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computation                  of Preferred Dividend Requirements:                                       |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (a)                  Pre-tax income                                            | $                              | 248,788 |   | $ | 202,150 |   | $ | 190,363 |   | $ | 163,068 |   | $ | 200,541 |   | $ | 325,192 |   |
|     (b)                  Income from continuing operations                         | $                              | 152,448 |   | $ | 125,411 |   | $ | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   | $ | 194,374 |   |
|     (c)                  Ratio of (a) to (b)                                       |                           | 1.6320 |   |   | 1.6119 |   |   | 1.5897 |   |   | 1.5039 |   |   | 1.6842 |   |   | 1.6730 |   |
|     (d)                  Preferred dividends                                       | $                              | - |   | $ | - |   | $ | 5,151 |   | $ | 7,831 |   | $ | 8,413 |   | $ | 8,994 |   |
|   Preferred                  dividend requirements [(d) multiplied by (c)]                   | $                              | - |   | $ | - |   | $ | 8,189 |   | $ | 11,777 |   | $ | 14,169 |   | $ | 15,047 |   |