EXHIBIT 12.1
SEMPRA ENERGY
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 and preferred stock dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 492 |  | $ | 549 |  | $ | 601 |  | $ | 620 |  | $ | 636 |  | $ | 162
Interest portion of annual rentals |  |  | 3 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | 1
Preferred dividends of subsidiaries (1) |  |  | 11 |  |  | 10 |  |  | 6 |  |  | 6 |  |  | 1 |  |  | -
Total fixed charges |  |  | 506 |  |  | 561 |  |  | 609 |  |  | 628 |  |  | 640 |  |  | 163
Preferred dividends for purpose of ratio |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total fixed charges and preferred dividends for purpose of ratio |  | $ | 506 |  | $ | 561 |  | $ | 609 |  | $ | 628 |  | $ | 640 |  | $ | 163
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations before adjustment for income or loss from equity investees |  | $ | 1,078 |  | $ | 1,747 |  | $ | 1,255 |  | $ | 1,399 |  | $ | 1,443 |  | $ | 587
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total fixed charges (from above) |  |  | 506 |  |  | 561 |  |  | 609 |  |  | 628 |  |  | 640 |  |  | 163
Distributed income of equity investees |  |  | 260 |  |  | 96 |  |  | 50 |  |  | 51 |  |  | 61 |  |  | 25
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized |  |  | 74 |  |  | 27 |  |  | 53 |  |  | 23 |  |  | 40 |  |  | 17
Preferred dividends of subsidiaries (1) |  |  | 11 |  |  | 10 |  |  | 6 |  |  | 6 |  |  | 1 |  |  | -
Total earnings for purpose of ratio |  | $ | 1,759 |  | $ | 2,367 |  | $ | 1,855 |  | $ | 2,049 |  | $ | 2,103 |  | $ | 758
Ratio of earnings to combined fixed charges and preferred stock dividends |  |  | 3.48 |  |  | 4.22 |  |  | 3.05 |  |  | 3.26 |  |  | 3.29 |  |  | 4.65
Ratio of earnings to fixed charges |  |  | 3.48 |  |  | 4.22 |  |  | 3.05 |  |  | 3.26 |  |  | 3.29 |  |  | 4.65
(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.