EX-12.3 8 sempra-63018xex123.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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
June 30,
2018
 
2017
 
2016
 
2015
 
2014
 
2013
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
  Pretax income from continuing operations before income or loss
 
 
 
 
 
 
 
 
 
 
 
 
    from equity investees, noncontrolling interests and preferred dividends
$
341

 
$
557

 
$
493

 
$
558

 
$
472

 
$
481

 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
  Combined fixed charges and preference security dividends for purpose of
 
 
 
 
 
 
 
 
 
 
 
 
    ratio (from below)
62

 
122

 
115

 
99

 
81

 
79

 
  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
$
401

 
$
676

 
$
605

 
$
654

 
$
550

 
$
557

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expensed and capitalized and amortization of premiums, discounts
 
 
 
 
 
 
 
 
 
 
 
 
    and capitalized expenses related to indebtedness(1)
$
60

 
$
118

 
$
111

 
$
96

 
$
77

 
$
76

 
  Estimate of interest within rental expense
1

 
2

 
2

 
1

 
2

 
1

 
  Total fixed charges
61

 
120

 
113

 
97

 
79

 
77

 
  Preference security dividend requirements(2)
1

 
2

 
2

 
2

 
2

 
2

 
  Combined fixed charges and preference security dividends for purpose of ratio
$
62

 
$
122

 
$
115

 
$
99

 
$
81

 
$
79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
6.57

 
5.63

 
5.35

 
6.74

 
6.96

 
7.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preference security dividends
6.47

 
5.54

 
5.26

 
6.61

 
6.79

 
7.05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.