EXHIBIT 12.1
SAN DIEGO GAS & ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
For the nine
months ended
September 30,
1995 1996 1997 1998 1999 2000
--------- -------- -------- --------- --------- ---------
Fixed Charges and Preferred
Stock Dividends:
Interest:
Long-Term Debt $ 82 $ 76 $ 69 $ 55 $ 49 $37
Rate Reduction Bonds -- -- -- 41 35 24
Short-Term Debt & Other 18 13 14 14 40 32
Amortization of Debt
Discount and Expense,
Less Premium 5 5 5 8 7 4
Interest Portion of
Annual Rentals 10 8 10 7 5 2
--------- -------- -------- ------- --------- ----------
Total Fixed
Charges 115 102 98 125 136 99
--------- -------- -------- -------- --------- ----------
Preferred Dividends
for Purpose of Ratio (1) 14 13 13 11 10 10
--------- -------- -------- -------- --------- ---------
Total Fixed Charges
and Preferred Stock
Dividends For
Purpose of Ratio $129 $115 $111 $136 $146 $109
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Earnings:
Net Income (before
preferred dividend
requirements) $219 $222 $238 $191 $199 $112
Add:
Fixed charges
(from above) 115 102 98 125 136 99
Less: Fixed charges
capitalized 2 1 2 1 1 --
Taxes on Income 173 198 219 141 126 114
--------- - ------- -------- --------- --------- --------
Total Earnings for
Purpose of Ratio $505 $521 $553 $456 $460 $325
========= ======== ======== ======== ========= ========
Ratio of Earnings
to Combined Fixed
Charges and Preferred
Stock Dividends 3.92 4.54 5.00 3.36 3.15 2.98
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(1) In computing this ratio, "Preferred dividends" represents the before-tax earnings necessary
to pay such dividends, computed at the effective tax rates for the applicable periods.