EXHIBIT 12.3
SOUTHERN CALIFORNIA GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | March 31,
|  |  | 2010 |  |  | 2011 |  |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 72 |  | $ | 77 |  | $ | 77 |  | $ | 76 |  | $ | 77 |  | $ | 22
Interest portion of annual rentals |  |  | 2 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | -
Total fixed charges |  |  | 74 |  |  | 78 |  |  | 78 |  |  | 77 |  |  | 79 |  |  | 22
Preferred stock dividends (1) |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | -
Combined fixed charges and preferred stock dividends for purpose of ratio |  | $ | 76 |  | $ | 80 |  | $ | 80 |  | $ | 79 |  | $ | 81 |  | $ | 22
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 463 |  | $ | 431 |  | $ | 369 |  | $ | 481 |  | $ | 472 |  | $ | 309
Add: Total fixed charges (from above) |  |  | 74 |  |  | 78 |  |  | 78 |  |  | 77 |  |  | 79 |  |  | 22
Less: Interest capitalized |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | -
Total earnings for purpose of ratio |  | $ | 536 |  | $ | 508 |  | $ | 446 |  | $ | 557 |  | $ | 550 |  | $ | 331
Ratio of earnings to combined fixed charges and preferred stock dividends |  |  | 7.05 |  |  | 6.35 |  |  | 5.58 |  |  | 7.05 |  |  | 6.79 |  |  | 15.05
Ratio of earnings to fixed charges |  |  | 7.24 |  |  | 6.51 |  |  | 5.72 |  |  | 7.23 |  |  | 6.96 |  |  | 15.05
(1) | In computing this ratio, “Preferred stock dividends” represents the before-tax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods.