EXHIBIT 12.1
SOUTHERN CALIFORNIA GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
| Years Ended December 31, | Three Months Ended March 31, 2009 | |||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
Fixed charges and preferred stock dividends: | ||||||||||||||||||
Interest | $ | 65 | $ | 72 | $ | 72 | $ | 50 | $ | 40 | $ | 18 | ||||||
Interest portion of annual rentals | 2 | 3 | 4 | 3 | 2 | — | ||||||||||||
Total fixed charges | 67 | 75 | 76 | 53 | 42 | 18 | ||||||||||||
Preferred stock dividends(1) | 2 | 2 | 2 | 2 | 2 | 1 | ||||||||||||
Combined fixed charges and preferred stock dividends for purpose of ratio | $ | 69 | $ | 77 | $ | 78 | $ | 55 | $ | 44 | $ | 19 | ||||||
Earnings: | ||||||||||||||||||
Pretax income from continuing operations | $ | 385 | $ | 391 | $ | 397 | $ | 309 | $ | 387 | $ | 95 | ||||||
Total fixed charges (from above) | 67 | 75 | 76 | 53 | 42 | 18 | ||||||||||||
Less: interest capitalized | — | 1 | 1 | — | — | — | ||||||||||||
Total earnings for purpose of ratio | $ | 452 | $ | 465 | $ | 472 | $ | 362 | $ | 429 | $ | 113 | ||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 6.55 | 6.04 | 6.05 | 6.58 | 9.75 | 5.95 | ||||||||||||
Ratio of earnings to fixed charges | 6.75 | 6.20 | 6.21 | 6.83 | 10.21 | 6.28 | ||||||||||||
| (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. |