EX-12 3 scg_12.htm EXHIBIT 12.2 Southern California Gas Company EXHIBIT 12.2

EXHIBIT 12.2

SOUTHERN CALIFORNIA GAS COMPANY

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(Dollars in millions)

Six months

ended

2001

2002

2003

2004

2005

June 30, 2006

Fixed Charges:

Interest

$ 70

$ 47

$ 48

$ 40

$ 50

$ 36

Interest portion of annual rentals

3

 

2

 

2

 

2

 

3

 

2

Total fixed charges

73

49

50

42

53

38

Preferred stock dividends (1)

2

 

2

 

2

 

2

 

2

 

1

Combined fixed charges and preferred stock

dividends for purpose of ratio

$ 75

$ 51

$ 52

$ 44

$ 55

$ 39

Earnings:

Pretax income from continuing operations

377

391

360

387

309

188

Add: total fixed charges (from above)

73

49

50

42

53

38

Less: interest capitalized

-

 

-

 

-

 

-

 

-

 

-

Total earnings for purpose of ratio

$ 450

$ 440

$ 410

$ 429

$ 362

$ 226

Ratio of earnings to combined fixed charges

and preferred stock dividends

6.00

8.63

7.88

9.75

6.58

5.79

Ratio of earnings to fixed charges

6.16

8.98

8.20

10.21

6.83

5.95

(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.