<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 nine months ended September 30, 1997 1998 1999 2000 2001 2002 -------- -------- -------- -------- -------- -------- <s> <c> <c> <c> <c> <c> <c> Fixed Charges and Preferred Stock Dividends: Interest $ 88 $118 $131 $119 $ 96 $ 63 Interest portion of annual rentals 10 7 5 3 3 2 -------- -------- -------- -------- -------- -------- Total Fixed Charges 98 125 136 122 99 65 Preferred Stock Dividends(1) 13 11 10 13 11 8 -------- -------- -------- -------- -------- -------- Combined Fixed Charges and Preferred Stock Dividends for Purpose of Ratio $111 $136 $146 $135 $110 $ 73 ======== ======== ======== ======== ======== ======== Earnings: Pretax income from continuing operations $457 $332 $325 $295 $324 $242 Total Fixed Charges (from above) 98 125 136 122 99 65 Less interest capitalized (2) (1) (1) (3) (1) - -------- -------- -------- -------- -------- -------- Total Earnings for Purpose of Ratio $553 $456 $460 $414 $422 $307 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends 4.98 3.35 3.15 3.07 3.84 4.21 ======== ======== ======== ======== ======== ======== (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. </table>