<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>
1998 1999 2000 2001 2002
-------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c>
Fixed Charges and Preferred
Stock Dividends:
Interest $118 $131 $119 $ 96 $ 83
Interest portion of
annual rentals 7 5 3 3 4
-------- -------- -------- -------- --------
Total Fixed
Charges 125 136 122 99 87
Preferred Stock Dividends(1) 11 10 13 11 9
-------- -------- -------- -------- --------
Combined Fixed Charges
and Preferred Stock
Dividends For
Purpose of Ratio $136 $146 $135 $110 $ 96
======== ======== ======== ======== ========
Earnings:
Pretax income from
continuing operations $332 $325 $295 $324 $300
Total Fixed charges
(from above) 125 136 122 99 87
Less: Interest
capitalized 1 1 3 1 1
-------- -------- -------- -------- --------
Total Earnings for
Purpose of Ratio $456 $460 $414 $422 $386
======== ======== ======== ======== ========
Ratio of Earnings
to Combined Fixed
Charges and Preferred
Stock Dividends 3.35 3.15 3.07 3.84 4.02
======== ======== ======== ======== ========
(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>