San Diego Gas & Electric 10-Q 2015 Q3 Quarterly report

EXHIBIT 12.2
SAN DIEGO GAS & ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
													September 30,
			2010		2011		2012		2013		2014		2015
Fixed charges and preferred stock dividends:
Interest		$	153	$	193	$	220	$	231	$	238	$	182
Interest portion of annual rentals			1		1		1		1		1		1
Total fixed charges			154		194		221		232		239		183
Preferred stock dividends (1)			7		7		7		5		-		-
Combined fixed charges and preferred stock dividends for purpose of ratio		$	161	$	201	$	228	$	237	$	239	$	183
Earnings:
Pretax income from continuing operations		$	531	$	692	$	705	$	626	$	797	$	680
Add: Total fixed charges (from above)			154		194		221		232		239		183
Less: Interest capitalized			1		1		-		-		1		-
Total earnings for purpose of ratio		$	684	$	885	$	926	$	858	$	1,035	$	863
Ratio of earnings to combined fixed charges and preferred stock dividends			4.25		4.40		4.06		3.62		4.33		4.72
Ratio of earnings to fixed charges			4.44		4.56		4.19		3.70		4.33		4.72
(1)	In computing this ratio, “Preferred stock dividends” represents the before-tax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods.