EXHIBIT 12.1 PACIFIC ENTERPRISES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions) For the nine months ended September 30, ----------------- 1995 1996 1997 1998 1999 1999 2000 ---- ---- ---- ---- ---- ------ ------ Fixed Charges: Interest $ 111 $ 99 $ 91 $ 84 $ 82 $ 61 $ 52 Interest Portion of Annual Rentals 13 12 12 11 3 2 3 Preferred dividends of subsidiary (1) 20 14 13 2 2 2 2 ----- ----- ----- ----- ----- ----- ----- Total Fixed Charges For Purpose of Ratio $ 144 $ 125 $ 116 $ 97 $ 87 $ 65 $ 57 ===== ===== ===== ===== ===== ====== ====== Earnings: Pretax income from continuing operations $ 314 $ 354 $ 335 $ 274 $ 350 $ 243 $ 292 Add: Fixed charges (from above) 144 125 116 97 87 65 57 Less: Fixed charges capitalized 3 2 1 1 2 1 2 ----- ----- ----- ----- ----- ----- ----- Fixed charges net of capitalized charges 141 123 115 96 85 64 55 ----- ----- ----- ----- ----- ----- ----- Total Earnings for Purpose of Ratio $ 455 $ 477 $ 450 $ 370 $ 435 $ 307 $ 347 ===== ===== ===== ===== ===== ====== ====== Ratio of Earnings to Fixed Charges 3.15 3.82 3.89 3.82 5.00 4.73 6.08 ===== ===== ===== ===== ===== ====== ====== (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.