EXHIBIT 12.2 SOUTHERN CALIFORNIA GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES ACTUAL ADJUSTED FOR SUPPLIER REFUNDS AND REGULATORY ACCOUNTS NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ---------------------------------------------------------- ------------- 1992 1993 1994 1995 1996 1997 ---------- ---------- ---------- ---------- ---------- ------------- (DOLLARS IN THOUSANDS) Earnings before fixed charges and taxes based on income............... $ 475,137 $ 439,387 $ 455,286 $ 475,029 $ 448,920 $ 405,645 Adjustment for interest related to supplier refunds and regulatory accounts............................ (3,018) (2,678) (9,729) (3,826) (4,752) (2,346) Earnings before adjusted fixed charges and taxes based on income........................... $ 472,119 $ 436,709 $ 445,557 $ 471,203 $ 444,168 $ 403,299 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- Fixed charges........................ $ 116,504 $ 116,890 $ 120,111 $ 108,645 $ 100,015 $ 75,611 Adjustment for interest related to supplier refunds and regulatory accounts............................ (3,018) (2,678) (9,729) (3,826) (4,752) (2,346) ---------- ---------- ---------- ---------- ---------- ------------- Adjusted fixed charges............. $ 113,486 $ 114,212 $ 110,382 $ 104,819 $ 95,263 $ 73,265 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- Ratio of earnings to fixed charges adjusted for supplier refunds and regulatory accounts............................ 4.16 3.82 4.04 4.50 4.66 5.50 ---------- ---------- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ---------- ------------- 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. See Exhibit 12.1 for the computation of the foregoing amounts. The ratios of earnings to fixed charges are influenced by the accrual of interest expense relating to supplier refunds payable to customers and regulatory accounts. Ratios which exclude interest related to supplier refunds and regulatory accounts are calculated as described above, but exclude from fixed charges related interest expense during the relevant period to the extent of related interest income.