|                                                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   | **Exhibit                12.1**  |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|---------------------------------------------|---------------------------------------------|----------|--------|----------|----------|----------|--------|---------------------------------------|
| **PUGET                ENERGY**                                                                    |
| **STATEMENT                SETTING FORTH COMPUTATIONS OF RATIOS OF**                               |
| **EARNINGS                TO FIXED CHARGES**                                                       |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |
|                                                                                               |   | **12                Months**       |     |                                        |                                        |     |   |     |     |     |   |                                  |   |
|                                                                                               |   | **Ended**                          |     |                                        |                                        |     |   |     |     |     |   |                                  |   |
|                                                                                               |   | **March                31,**       |     | **Years                Ended December 31,** |
|                                                                                               |   | **2007**                           |     | **2006**                                    |                                        | **2005** |   | **2004** |     | **2003** |   | **2002**                              |   |
| Earnings                Available For Fixed Charges:                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |
| Pre-tax                income:                                                                     |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |
|    Income                from continuing operations                                 |   | $                                  | 172,539  |                                        | $                                           | 167,224  |   | $        | 146,282  |     | $      | 125,411                               |   | $ | 119,750 |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |                               | 86,362   |                                        |                                        | 96,270   |   |     | 88,608   |     |   | 76,756                                |   |   | 70,775 |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |                               | 502      |                                        |                                        | (3,784   | )      |     | 2,142    |     |   | (17                                   | ) |   | (162 | ) |   | 2,082 |   |
|    Capitalized                interest                                              |   |                               | (6,637   | )                                           |                                        | (7,978   | )      |     | (3,800   | )        |   | (2,796                                | ) |   | (2,272 | ) |   | (1,397 | ) |
| Total                                                                                              |   | $                                  | 252,766  |                                        | $                                           | 251,732  |   | $        | 233,232  |     | $      | 199,354                               |   | $ | 188,091 |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $                                  | 191,561  |                                        | $                                           | 184,013  |   | $        | 174,682  |     | $      | 172,050                               |   | $ | 182,902 |   | $ | 192,830 |   |
|    Other                interest                                                    |   |                               | 6,637    |                                        |                                        | 7,978    |   |     | 3,800    |     |   | 2,796                                 |   |   | 2,272 |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |                               | 9,017    |                                        |                                        | 9,151    |   |     | 5,234    |     |   | 5,424                                 |   |   | 4,669 |   |   | 5,394 |   |
| Total                                                                                              |   | $                                  | 207,215  |                                        | $                                           | 201,142  |   | $        | 183,716  |     | $      | 180,270                               |   | $ | 189,843 |   | $ | 199,621 |   |
| Earnings                available for combined fixed charges                                       |   | $                                  | 459,981  |                                        | $                                           | 452,874  |   | $        | 416,948  |     | $      | 379,624                               |   | $ | 377,934 |   | $ | 361,292 |   |
| Ratio                of Earnings to Fixed Charges                                                  |   |                               | 2.22x    |                                        |                                        | 2.25x    |   |     | 2.27x    |     |   | 2.11x                                 |   |   | 1.99x |   |   | 1.81x |   |
|                                                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
| **PUGET                ENERGY**                                                                    |
| **EARNINGS                TO COMBINED FIXED CHARGES AND PREFERRED STOCK                DIVIDENDS** |
| **(Dollars                in Thousands)**                                                          |
|                                                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|                                                                                               |   |  **12                Months** |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |
|                                                                                               |   |  **Ended**                    |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |
|                                                                                                    |   |  **March                31,** |     |                                        | **Years                Ended December 31,** |
|                                                                                               |   |                               | **2007** |                                        |                                        | **2006** |   |     | **2005** |     |   | **2004**                              |   |   | **2003** |   |   | **2002** |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements:                                  |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
| Pre-tax                income:                                                                     |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Income                from continuing operations                                 |   | $                                  | 172,539  |                                        | $                                           | 167,224  |   | $        | 146,282  |     | $      | 125,411                               |   | $ | 119,750 |   | $ | 108,429 |   |
|    Income                taxes                                                      |   |                               | 86,362   |                                        |                                        | 96,270   |   |     | 88,608   |     |   | 76,756                                |   |   | 70,775 |   |   | 52,557 |   |
|    Income                taxes charged to other income - net                        |   |                               | 502      |                                        |                                        | (3,784   | )      |     | 2,142    |     |   | (17                                   | ) |   | (162 | ) |   | 2,082 |   |
| Subtotal                                                                                           |   |                               | 259,403  |                                        |                                        | 259,710  |   |     | 237,032  |     |   | 202,150                               |   |   | 190,363 |   |   | 163,068 |   |
|    Capitalized                interest                                              |   |                               | (6,637   | )                                           |                                        | (7,978   | )      |     | (3,800   | )        |   | (2,796                                | ) |   | (2,272 | ) |   | (1,397 | ) |
| Total                                                                                              |   | $                                  | 252,766  |                                        | $                                           | 251,732  |   | $        | 233,232  |     | $      | 199,354                               |   | $ | 188,091 |   | $ | 161,671 |   |
| Fixed                charges:                                                                      |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $                                  | 191,561  |                                        | $                                           | 184,013  |   | $        | 174,682  |     | $      | 172,050                               |   | $ | 182,902 |   | $ | 192,830 |   |
|    Other                interest                                                    |   |                               | 6,637    |                                        |                                        | 7,978    |   |     | 3,800    |     |   | 2,796                                 |   |   | 2,272 |   |   | 1,397 |   |
|    Portion                of rentals representative of the interest factor          |   |                               | 9,017    |                                        |                                        | 9,151    |   |     | 5,234    |     |   | 5,424                                 |   |   | 4,669 |   |   | 5,394 |   |
| Total                                                                                              |   | $                                  | 207,215  |                                        | $                                           | 201,142  |   | $        | 183,716  |     | $      | 180,270                               |   | $ | 189,843 |   | $ | 199,621 |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements                                   |   | $                                  | 459,981  |                                        | $                                           | 452,874  |   | $        | 416,948  |     | $      | 379,624                               |   | $ | 377,934 |   | $ | 361,292 |   |
| Dividend                Requirement:                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|    Fixed                charges above                                               |   | $                                  | 207,215  |                                        | $                                           | 201,142  |   | $        | 183,716  |     | $      | 180,270                               |   | $ | 189,843 |   | $ | 199,621 |   |
|    Preferred                dividend requirements below                             |   |                               | --       |                                        |                                        | --       |   |     | --       |     |   | --                                    |   |   | 8,189 |   |   | 11,777 |   |
| Total                                                                                              |   | $                                  | 207,215  |                                        | $                                           | 201,142  |   | $        | 183,716  |     | $      | 180,270                               |   | $ | 198,032 |   | $ | 211,398 |   |
| Ratio                of Earnings to Combined Fixed Charges and                                     |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
| Preferred                Dividends Requirement                                                     |   |                               | 2.22x    |                                        |                                        | 2.25x    |   |     | 2.27x    |     |   | 2.11x                                 |   |   | 1.91x |   |   | 1.71x |   |
|                                                                                               |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
| Computation                of Preferred Dividend Requirements:                                     |   |                               |     |                                        |                                        |     |   |     |     |     |   |                                  |   |   |   |   |   |   |   |
|     (a)                Pre-tax income                                          |   | $                                  | 259,403  |                                        | $                                           | 259,710  |   | $        | 237,032  |     | $      | 202,150                               |   | $ | 190,363 |   | $ | 163,068 |   |
|     (b)                Income from continuing operations                       |   | $                                  | 172,539  |                                        | $                                           | 167,224  |   | $        | 146,282  |     | $      | 125,411                               |   | $ | 119,750 |   | $ | 108,429 |   |
|     (c)                Ratio of (a) to (b)                                     |   |                               | 1.5034   |                                        |                                        | 1.5531   |   |     | 1.6204   |     |   | 1.6119                                |   |   | 1.5897 |   |   | 1.5039 |   |
|     (d)                Preferred dividends                                     |   | $                                  | --       |                                        | $                                           | --       |   | $        | --       |     | $      | --                                    |   | $ | 5,151 |   | $ | 7,831 |   |
|   Preferred                dividend requirements [(d) multiplied by (c)]                 |   | $                                  | --       |                                        | $                                           | --       |   | $        | --       |     | $      | --                                    |   | $ | 8,189 |   | $ | 11,777 |   |