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,
|  |  | 2011 |  |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016
Fixed charges and preferred stock dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 77 |  | $ | 77 |  | $ | 76 |  | $ | 77 |  | $ | 96 |  | $ | 26
Interest portion of annual rentals |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | -
Total fixed charges |  |  | 78 |  |  | 78 |  |  | 77 |  |  | 79 |  |  | 97 |  |  | 26
Preferred stock dividends (1) |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | -
Combined fixed charges and preferred |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
stock dividends for purpose of ratio |  | $ | 80 |  | $ | 80 |  | $ | 79 |  | $ | 81 |  | $ | 99 |  | $ | 26
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 431 |  | $ | 369 |  | $ | 481 |  | $ | 472 |  | $ | 558 |  | $ | 282
Add: Total fixed charges (from above) |  |  | 78 |  |  | 78 |  |  | 77 |  |  | 79 |  |  | 97 |  |  | 26
Less: Interest capitalized |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | -
Total earnings for purpose of ratio |  | $ | 508 |  | $ | 446 |  | $ | 557 |  | $ | 550 |  | $ | 654 |  | $ | 308
Ratio of earnings to combined fixed |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
charges and preferred stock dividends |  |  | 6.35 |  |  | 5.58 |  |  | 7.05 |  |  | 6.79 |  |  | 6.61 |  |  | 11.85
Ratio of earnings to fixed charges |  |  | 6.51 |  |  | 5.72 |  |  | 7.23 |  |  | 6.96 |  |  | 6.74 |  |  | 11.85
(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. |  |