EX-12 3 peex12_1.htm EXHIBIT 12.1 PE EXHIBIT 12.1

EXHIBIT 12.1

PACIFIC ENTERPRISES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

2001

2002

2003

2004

2005

Fixed Charges:

Interest

$ 88

$ 63

$ 54

$ 47

$ 55

Interest portion of annual rentals

3

2

2

2

3

Preferred dividends of subsidiaries (1)

2

2

2

2

2

Total fixed charges for purpose of ratio

$ 93

$ 67

$ 58

$ 51

$ 60

Earnings:

Pretax income from continuing operations

$ 377

$ 383

$ 361

$ 390

$ 324

Total fixed charges (from above)

93

67

58

51

60

Total earnings for purpose of ratio

$ 470

$ 450

$ 419

$ 441

$ 384

Ratio of earnings to fixed charges

5.05

6.72

7.22

8.65

6.40

(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.