<table> EXHIBIT 12.1 SEMPRA ENERGY COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in millions) <caption> 1998 1999 2000 2001 2002 -------- -------- -------- -------- -------- <s> <c> <c> <c> <c> <c> Fixed Charges and Preferred Stock Dividends: Interest $ 210 $ 233 $ 308 $ 358 $ 350 Interest portion of annual rentals 20 10 8 6 6 Preferred dividends of subsidiaries (1) 18 16 18 16 15 -------- -------- -------- -------- -------- Combined Fixed Charges and Preferred Stock Dividends for Purpose of Ratio $ 248 $ 259 $ 334 $ 380 $ 371 ======== ======== ======== ======== ======== Earnings: Pretax income from continuing operations $ 432 $ 573 $ 699 $ 731 $ 721 Total Fixed Charges (from above) 248 259 334 380 371 Less: Interest capitalized 1 1 3 11 29 Equity income (loss) of unconsolidated subsidiaries and joint ventures - - 62 12 (55) -------- -------- -------- -------- -------- Total Earnings for Purpose of Ratio $ 679 $ 831 $ 968 $1,088 $1,118 ======== ======== ======== ======= ======== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends 2.74 3.21 2.90 2.86 3.01 ======== ======== ======== ======== ======== (1) In computing this ratio, "Preferred dividends of subsidiaries" represents the before-tax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods. </table>