EXHIBIT 12.1 SOUTHERN CALIFORNIA GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES ACTUAL NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ---------------------------------------------------------- ------------- 1992 1993 1994 1995 1996 1997 ---------- ---------- ---------- ---------- ---------- ------------- Earnings before fixed charges and taxes based on income: Net income......................... $ 194,716 $ 193,676 $ 190,513 $ 214,833 $ 201,111 $ 187,181 Fixed charges.................... 116,504 116,890 120,111 108,645 100,015 75,611 Income taxes charged to operations..................... 164,487 134,491 145,603 161,274 144,213 139,589 Income taxes on nonoperating income......................... (570) (5,670) (941) 277 3,581 3,264 ---------- ---------- ---------- ---------- ---------- ------------- Earnings before fixed charges and taxes based on income.... $ 475,137 $ 439,387 $ 455,286 $ 475,029 $ 448,920 $ 405,645 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- Fixed charges: Interest and amortization.......... $ 105,509 $ 104,986 $ 106,448 $ 93,802 $ 86,088 $ 64,985 Rental expenses approximating interest charges included in operating expenses............... 10,995 11,904 13,663 14,843 13,927 10,625 ---------- ---------- ---------- ---------- ---------- ------------- Total actual fixed charges..... $ 116,504 $ 116,890 $ 120,111 $ 108,645 $ 100,015 $ 75,610 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- Ratio of earnings to fixed charges... 4.08 3.76 3.79 4.37 4.49 5.36 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- For purpose of the above computation, earnings represent income before income taxes plus fixed charges, and fixed charges represent interest charges (including amortization of bond premium, discount and expense) plus a portion of rental expense approximating interest charges.