Southern California Gas Company PFD 6% (SOCGM) 10-Q 2015 Q2 Quarterly report

EXHIBIT 12.3
SOUTHERN CALIFORNIA GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
													June 30,
			2010		2011		2012		2013		2014		2015
Fixed charges and preferred stock dividends:
Interest		$	72	$	77	$	77	$	76	$	77	$	44
Interest portion of annual rentals			2		1		1		1		2		1
Total fixed charges			74		78		78		77		79		45
Preferred stock dividends (1)			2		2		2		2		2		1
Combined fixed charges and preferred    stock dividends for purpose of ratio		$	76	$	80	$	80	$	79	$	81	$	46
Earnings:
Pretax income from continuing operations		$	463	$	431	$	369	$	481	$	472	$	396
Add: Total fixed charges (from above)			74		78		78		77		79		45
Less: Interest capitalized			1		1		1		1		1		-
Total earnings for purpose of ratio		$	536	$	508	$	446	$	557	$	550	$	441
Ratio of earnings to combined fixed charges and preferred stock dividends			7.05		6.35		5.58		7.05		6.79		9.59
Ratio of earnings to fixed charges			7.24		6.51		5.72		7.23		6.96		9.80
(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.