<table> EXHIBIT 12.1 SAN DIEGO GAS & ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in millions) <caption> For the six months ended June 30, 1996 1997 1998 1999 2000 2001 -------- -------- -------- -------- -------- -------- <s> <c> <c> <c> <c> <c> <c> Fixed Charges and Preferred Stock Dividends: Interest: Long-Term Debt $ 76 $ 69 $ 55 $ 49 $50 $29 Rate Reduction Bonds -- -- 41 35 33 14 Short-Term Debt & Other 13 14 14 40 31 5 Amortization of Debt Discount and Expense, Less Premium 5 5 8 7 5 3 Interest Portion of Annual Rentals 8 10 7 5 3 2 -------- -------- -------- -------- -------- -------- Total Fixed Charges 102 98 125 136 122 53 -------- -------- -------- -------- -------- -------- Preferred Dividends for Purpose of Ratio (1) 13 13 11 10 13 6 -------- -------- -------- -------- -------- -------- Total Fixed Charges and Preferred Stock Dividends For Purpose of Ratio $115 $111 $136 $146 $135 $59 ======== ======== ======== ======== ======== ======== Earnings: Pretax income from continuing operations $420 $457 $332 $325 $295 $180 Add: Fixed charges (from above) 102 98 125 136 122 53 Less: Fixed charges capitalized 1 2 1 1 3 - -------- -------- -------- -------- -------- -------- Total Earnings for Purpose of Ratio $521 $553 $456 $460 $414 $233 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends 4.54 5.00 3.36 3.15 3.07 3.95 ======== ======== ======== ======== ======== ======== (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. </table>