EXHIBIT 12.1 SAN DIEGO GAS & ELECTRIC COMPANY COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 6 Months Ended 1992 1993 1994 1995 1996 6/30/97 --------- ---------- ---------- ---------- ---------- ---------- Fixed Charges: Interest: Long-Term Debt $ 97,067 $ 84,830 $ 81,749 $ 82,591 $ 76,463 $ 35,933 Short-Term Debt 5,043 6,676 8,894 17,886 12,635 6,878 Amortization of Debt Discount and Expense, Less Premium 2,881 4,162 4,604 4,870 4,881 2,526 Interest Portion of Annual Rentals 14,558 9,881 9,496 9,631 8,446 4,980 ---------- ---------- ----------- --------- ----------- ---------- Total Fixed Charges 119,549 105,549 104,743 114,978 102,425 50,317 ---------- ---------- ----------- --------- ----------- ---------- Preferred Dividends Requirements 9,600 8,565 7,663 7,663 6,582 3,291 Ratio of Income Before Tax to Net Income 1.71389 1.79353 1.83501 1.78991 1.88864 2.01833 ---------- ----------- ----------- ---------- ---------- ---------- Preferred Dividends for Purpose of Ratio 16,453 15,362 14,062 13,716 12,431 6,642 ---------- ----------- ----------- ---------- ---------- ---------- Total Fixed Charges and Preferred Dividends for Purpose of Ratio $136,002 $120,911 $118,805 $128,694 $114,856 $ 56,959 ========== =========== ========== ========== ========== ========== Earnings: Net Income (before preferred dividend requirements) $224,177 $215,872 $206,296 $219,049 $222,765 $ 96,832 Add: Fixed Charges (from above) 119,549 105,549 104,743 114,978 102,425 50,317 Less: Fixed Charges Capitalized 1,262 1,483 1,424 2,040 1,495 1,510 Taxes on Income 160,038 171,300 172,259 173,029 197,958 98,607 ---------- ---------- ---------- ---------- ----------- --------- Total Earnings for Purpose of Ratio $502,502 $491,238 $481,874 $505,016 $521,653 $244,246 ========== ========== ========== ========== =========== ========= Ratio of Earnings to Combined Fixed Charges and Preferred Dividends 3.69 4.06 4.06 3.92 4.54 4.29 ========== ========== ========== ========== =========== =========