**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,                                         September 30, 2001        2000         1999         1998        1997         1996------------------------------------- ---------------------- ----------- ------------ ------------ ----------- ------------EARNINGS AVAILABLE FOR FIXED CHARGES  Pre-tax income:    Income from continuing      operations per statement      of income                                    $182,596    $193,831     $185,567     $169,612    $125,698     $167,351    Federal income taxes                            125,911     128,973      109,164      105,814      44,916      106,876    Federal income taxes charged      to other income - net                           9,891       1,411        2,909        3,986      14,807         (784)    Capitalized interest                               (612)     (1,264)      (3,692)      (1,782)       (360)        (600)    Undistributed (earnings) or      losses of less-than-      fifty-percent-owned      entities                                           --          --           --           --        (608)         460------------------------------------- ---------------------- ----------- ------------ ------------ ----------- ------------Total                                              $317,786    $322,951     $293,948     $277,630    $184,453     $273,303------------------------------------- ---------------------- ----------- ------------ ------------ ----------- ------------  Fixed charges:    Interest expense                               $191,977    $184,405     $160,966     $146,248    $123,543     $122,635    Other interest                                      612       1,264        3,692        1,782         360          600    Portion of rentals      representative of the      interest factor                                 6,578       5,002        4,575        2,878       3,143        4,187------------------------------------- ---------------------- ----------- ------------ ------------ ----------- ------------Total                                              $199,167    $190,671     $169,233     $150,908    $127,046     $127,422------------------------------------- ---------------------- ----------- ------------ ------------ ----------- ------------  Earnings available for    combined fixed charges                         $516,953    $513,622     $463,181     $428,538    $311,499     $400,725RATIO OF EARNINGS TO  FIXED CHARGES                                       2.60x       2.69x        2.74x        2.84x       2.45x        3.14x
   PUGET ENERGY

STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF

        (Dollars in Thousands)                                                12 Months                                                   Ending                      Year Ended December 31,                                       September 30, 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                                  $182,596     $193,831     $185,567     $169,612     $125,698     $167,351    Federal income taxes                          125,911      128,973      109,164      105,814       44,916      106,876    Federal income taxes charged      to other income - net                         9,891        1,411        2,909       3,986        14,807         (784)---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------Subtotal                                          318,398      324,215      297,640      279,412      185,421      273,443  Capitalized interest                               (612)      (1,264)      (3,692)      (1,782)        (360)        (600)  Undistributed (earnings) or    losses of less-than-fifty-    percent-owned entities                             --           --          --             --       (608)          460---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------Total                                            $317,786     $322,951     $293,948     $277,630     $184,453     $273,303---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------  Fixed charges:    Interest expense                             $191,977     $184,405     $160,966     $146,248     $123,543     $122,635    Other interest                                    612        1,264        3,692        1,782          360          600    Portion of rentals      representative of the      interest factor                               6,578        5,002        4,575        2,878        3,143        4,187---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------Total                                            $199,167     $190,671     $169,233     $150,908     $127,046     $127,422---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------Earnings available for  combined fixed charges  and preferred dividend  requirements                                   $516,953     $513,622     $463,181     $428,538     $311,499     $400,725DIVIDEND REQUIREMENT:  Fixed charges above                            $199,167     $190,671     $169,233     $150,908     $127,046     $127,422  Preferred dividend    requirements below                             14,923       15,044       17,747       21,421       26,266       36,242---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------Total                                            $214,090     $205,715     $186,980     $172,329     $153,312     $163,664---------------------------------------------------------- ------------ ------------ ------------ ------------ ------------                                             12 Months                                                Ending                     Year Ended December 31,                                    September 30, 2001        2000         1999         1998        1997         1996------------------------------------------------------- ----------- ------------ ------------ ----------- ------------RATIO OF EARNINGS TO COMBINED  FIXED CHARGES AND PREFERRED  DIVIDEND REQUIREMENTS                           2.41        2.50         2.48         2.49        2.03         2.45COMPUTATION OF PREFERRED  DIVIDEND REQUIREMENTS:  (a) Pre-tax income                          $318,398    $324,215     $297,640     $279,412   $185, 421     $273,443  (b) Income from continuing        operations                            $182,596    $193,831     $185,567     $169,612    $125,698     $167,351  (c) Ratio of (a) to (b)                       1.7437      1.6727       1.6039       1.6474      1.4751       1.6339  (d) Preferred dividends                       $8,558     $ 8,994     $ 11,065     $ 13,003    $ 17,806     $ 22,181  Preferred dividend    requirements      [(d) multiplied by (c)]                  $14,923    $ 15,044     $ 17,747     $ 21,421    $ 26,266     $ 36,242**