|                                                                                               |   |                         |                         |                                        |   |                                        |   |     |     | **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,** |
|                                                                                               |   | **2006**                     |                         | **2005**                                    |   | **2004**                                    |   | **2003** |     | **2002**                              |   | **2001** |   |
| Earnings                Available For Fixed Charges:                                               |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |
| Pre-tax                income:                                                                     |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |
|    Income                from continuing operations                                 |   | $                            | 156,368                      |                                        | $      | 146,282                                     |   | $        | 125,411  |                                  | $      | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   |
|    Income                taxes                                                      |   |                         | 92,114                       |                                        |   | 88,608                                      |   |     | 76,756   |                                  |   | 70,775 |   |   | 52,557 |   |   | 76,882 |   |
|    Income                taxes charged to other income - net                        |   |                         | (3,366                       | )                                           |   | 2,142                                       |   |     | (17      | )                                     |   | (162 | ) |   | 2,082 |   |   | 4,590 |   |
|    Capitalized                interest                                              |   |                         | (5,065                       | )                                           |   | (3,800                                      | )      |     | (2,796   | )                                     |   | (2,272 | ) |   | (1,397 | ) |   | (883 | ) |
| Total                                                                                              |   | $                            | 240,051                      |                                        | $      | 233,232                                     |   | $        | 199,354  |                                  | $      | 188,091 |   | $ | 161,671 |   | $ | 199,658 |   |
| Fixed                charges:                                                                      |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $                            | 178,299                      |                                        | $      | 174,682                                     |   | $        | 172,050  |                                  | $      | 182,902 |   | $ | 192,830 |   | $ | 190,849 |   |
|    Other                interest                                                    |   |                         | 5,065                        |                                        |   | 3,800                                       |   |     | 2,796    |                                  |   | 2,272 |   |   | 1,397 |   |   | 883 |   |
|    Portion                of rentals representative of the interest factor          |   |                         | 7,615                        |                                        |   | 5,234                                       |   |     | 5,424    |                                  |   | 4,669 |   |   | 5,394 |   |   | 5,633 |   |
| Total                                                                                              |   | $                            | 190,979                      |                                        | $      | 183,716                                     |   | $        | 180,270  |                                  | $      | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   |
| Earnings                available for combined fixed charges                                       |   | $                            | 431,030                      |                                        | $      | 416,948                                     |   | $        | 379,624  |                                  | $      | 377,934 |   | $ | 361,292 |   | $ | 397,023 |   |
| Ratio                of Earnings to Fixed Charges                                                  |   |                         | 2.26                         | x                                           |   | 2.27                                        | x      |     | 2.11     | x                                     |   | 1.99 | x |   | 1.81 | x |   | 2.01 | x |
|                                                                                               |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
| **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,** |
|                                                                                               |   |                         | **2006**                     |                                        |   | **2005**                                    |   |     | **2004** |                                  |   | **2003** |   |   | **2002** |   |   | **2001** |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements:                                  |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
| Pre-tax                income:                                                                     |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Income                from continuing operations                                 |   | $                            | 156,368                      |                                        | $      | 146,282                                     |   | $        | 125,411  |                                  | $      | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   |
|    Income                taxes                                                      |   |                         | 92,114                       |                                        |   | 88,608                                      |   |     | 76,756   |                                  |   | 70,775 |   |   | 52,557 |   |   | 76,882 |   |
|    Income                taxes charged to other income - net                        |   |                         | (3,366                       | )                                           |   | 2,142                                       |   |     | (17      | )                                     |   | (162 | ) |   | 2,082 |   |   | 4,590 |   |
| Subtotal                                                                                           |   |                         | 245,116                      |                                        |   | 237,032                                     |   |     | 202,150  |                                  |   | 190,363 |   |   | 163,068 |   |   | 200,541 |   |
|    Capitalized                interest                                              |   |                         | (5,065                       | )                                           |   | (3,800                                      | )      |     | (2,796   | )                                     |   | (2,272 | ) |   | (1,397 | ) |   | (883 | ) |
| Total                                                                                              |   | $                            | 240,051                      |                                        | $      | 233,232                                     |   | $        | 199,354  |                                  | $      | 188,091 |   | $ | 161,671 |   | $ | 199,658 |   |
| Fixed                charges:                                                                      |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Interest                expense                                                  |   | $                            | 178,299                      |                                        | $      | 174,682                                     |   | $        | 172,050  |                                  | $      | 182,902 |   | $ | 192,830 |   | $ | 190,849 |   |
|    Other                interest                                                    |   |                         | 5,065                        |                                        |   | 3,800                                       |   |     | 2,796    |                                  |   | 2,272 |   |   | 1,397 |   |   | 883 |   |
|    Portion                of rentals representative of the interest factor          |   |                         | 7,615                        |                                        |   | 5,234                                       |   |     | 5,424    |                                  |   | 4,669 |   |   | 5,394 |   |   | 5,633 |   |
| Total                                                                                              |   | $                            | 190,979                      |                                        | $      | 183,716                                     |   | $        | 180,270  |                                  | $      | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   |
| Earnings                Available for Combined Fixed Charges and                                   |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Preferred                Dividend Requirements                                   |   | $                            | 431,030                      |                                        | $      | 416,948                                     |   | $        | 379,624  |                                  | $      | 377,934 |   | $ | 361,292 |   | $ | 397,023 |   |
| Dividend                Requirement:                                                               |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|    Fixed                charges above                                               |   | $                            | 190,979                      |                                        | $      | 183,716                                     |   | $        | 180,270  |                                  | $      | 189,843 |   | $ | 199,621 |   | $ | 197,365 |   |
|    Preferred                dividend requirements below                             |   |                         | --                           |                                        |   | --                                          |   |     | --       |                                  |   | 8,189 |   |   | 11,777 |   |   | 14,169 |   |
| Total                                                                                              |   | $                            | 190,979                      |                                        | $      | 183,716                                     |   | $        | 180,270  |                                  | $      | 198,032 |   | $ | 211,398 |   | $ | 211,534 |   |
|                                                                                               |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
| Ratio                of Earnings to Combined Fixed Charges and                                     |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
| Preferred                Dividends Requirement                                                     |   |                         | 2.28                         | x                                           |   | 2.27                                        | x      |     | 2.11     | x                                     |   | 1.91 | x |   | 1.71 | x |   | 1.88 | x |
|                                                                                               |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
| Computation                of Preferred Dividend Requirements:                                     |   |                         |                         |                                        |   |                                        |   |     |     |                                  |   |   |   |   |   |   |   |   |   |
|     (a)                Pre-tax income                                          |   | $                            | 245,116                      |                                        | $      | 237,032                                     |   | $        | 202,150  |                                  | $      | 190,363 |   | $ | 163,068 |   | $ | 200,541 |   |
|     (b)                Income from continuing operations                       |   | $                            | 156,368                      |                                        | $      | 146,282                                     |   | $        | 125,411  |                                  | $      | 119,750 |   | $ | 108,429 |   | $ | 119,069 |   |
|     (c)                Ratio of (a) to (b)                                     |   |                         | 1.5676                       |                                        |   | 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 |   |