EXHIBIT 12.1
SEMPRA ENERGY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
2003 | 2004 | 2005 | 2006 | 2007 | September 30, 2008 | |||||||||||||
Fixed charges and preferred stock dividends: | ||||||||||||||||||
Interest | $ | 345 | $ | 332 | $ | 342 | $ | 413 | $ | 379 | $ | 241 | ||||||
Interest portion of annual rentals | 4 | 4 | 5 | 6 | 6 | 2 | ||||||||||||
Preferred dividends of subsidiaries (1) | 11 | 12 | 10 | 15 | 14 | 11 | ||||||||||||
Total fixed charges | 360 | 348 | 357 | 434 | 399 | 254 | ||||||||||||
Preferred dividends for purpose of ratio | — | — | — | — | — | — | ||||||||||||
Total fixed charges and preferred dividends for purpose of ratio | $ | 360 | $ | 348 | $ | 357 | $ | 434 | $ | 399 | $ | 254 | ||||||
Earnings: | ||||||||||||||||||
Pretax income from continuing operations | $ | 814 | $ | 1,105 | $ | 947 | $ | 1,732 | $ | 1,649 | $ | 1,217 | ||||||
Add: | ||||||||||||||||||
Total fixed charges (from above) | 360 | 348 | 357 | 434 | 399 | 254 | ||||||||||||
Distributed income of equity investees | 72 | 59 | 73 | 431 | 19 | 85 | ||||||||||||
Less: | ||||||||||||||||||
Interest capitalized | 26 | 8 | 28 | 58 | 100 | 75 | ||||||||||||
Equity in income (loss) of unconsolidated subsidiaries and joint ventures | 5 | 36 | 66 | 156 | 90 | 228 | ||||||||||||
Minority interest in income of consolidated subsidiaries | — | — | — | 7 | 31 | 4 | ||||||||||||
Total earnings for purpose of ratio | $ | 1,215 | $ | 1,468 | $ | 1,283 | $ | 2,376 | $ | 1,846 | $ | 1,249 | ||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 3.38 | 4.22 | 3.59 | 5.47 | 4.63 | 4.92 | ||||||||||||
Ratio of earnings to fixed charges | 3.38 | 4.22 | 3.59 | 5.47 | 4.63 | 4.92 | ||||||||||||
(1) | In computing this ratio, “Preferred dividends of subsidiaries” represents the before-tax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods. |