EX-12 2 pe_ex12.htm EXHIBIT 12.1 Pacific Enterprises EXHIBIT 12.1

EXHIBIT 12.1

PACIFIC ENTERPRISES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

Six months ended

2000

2001

2002

2003

2004

June 30, 2005

Fixed Charges and Preferred Stock Dividends:

Interest

$ 72

$ 88

$ 63

$ 54

$ 47

$ 25

Interest portion of annual rentals

4

3

2

2

2

1

Preferred dividends of subsidiaries (1)

2

2

2

2

2

1

Total fixed charges for purpose of ratio

$ 78

$ 93

$ 67

$ 58

$ 51

$ 27

Earnings:

Pretax income from continuing operations

$ 396

$ 377

$ 383

$ 361

$ 391

$ 212

Total fixed charges (from above)

78

93

67

58

51

27

Total earnings for purpose of ratio

$ 474

$ 470

$ 450

$ 419

$ 442

$ 239

Ratio of earnings to fixed charges

6.08

5.05

6.72

7.22

8.67

8.85

(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.