EX-12.3 4 sempra-93017xex123.htm EXHIBIT 12.3 Exhibit


 
EXHIBIT 12.3
 
SOUTHERN CALIFORNIA GAS COMPANY
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
 
AND PREFERRED STOCK DIVIDENDS
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
September 30,
2017
 
2016
 
2015
 
2014
 
2013
 
2012
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
  Pretax income from continuing operations before income or loss
 
 
 
 
 
 
 
 
 
 
 
 
    from equity investees, noncontrolling interests and preferred dividends
$
372

 
$
493

 
$
558

 
$
472

 
$
481

 
$
369

 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
  Combined fixed charges and preference security dividends for purpose
 
 
 
 
 
 
 
 
 
 
 
 
    ratio (from below)
91

 
115

 
99

 
81

 
79

 
80

 
  Amortization of capitalized interest(1)
—

 
—

 
—

 
—

 
—

 
—

 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
  Interest capitalized
1

 
1

 
1

 
1

 
1

 
1

 
  Preference security dividend requirements(2)
1

 
2

 
2

 
2

 
2

 
2

 
  Total earnings for purpose of ratio
$
461

 
$
605

 
$
654

 
$
550

 
$
557

 
$
446

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expensed and capitalized and amortization of premiums, discounts
 
 
 
 
 
 
 
 
 
 
 
 
    and capitalized expenses related to indebtedness(1)
$
88

 
$
111

 
$
96

 
$
77

 
$
76

 
$
77

 
  Estimate of interest within rental expense
2

 
2

 
1

 
2

 
1

 
1

 
  Total fixed charges
$
90

 
$
113

 
$
97

 
$
79

 
$
77

 
$
78

 
  Preference security dividend requirements(2)
1

 
2

 
2

 
2

 
2

 
2

 
  Combined fixed charges and preference security dividends for purpose ratio
$
91

 
$
115

 
$
99

 
$
81

 
$
79

 
$
80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
5.12

 
5.35

 
6.74

 
6.96

 
7.23

 
5.72

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preference security dividends
5.07

 
5.26

 
6.61

 
6.79

 
7.05

 
5.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In computing this ratio, our public utilities that follow FASB ASC Topic 980, Regulated Operations, do not add amortization of capitalized interest in determining Earnings or reduce Fixed Charges by allowance for funds used during construction.
(2)
In computing this ratio, “Preference security dividend requirements” represents the pretax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods.