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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
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Commission file number 1-3779
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SAN DIEGO GAS & ELECTRIC COMPANY
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(Exact name of registrant as specified in its charter)
California 95-1184800
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8326 Century Park Court, San Diego, California 92123
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(Address of principal executive offices)
(Zip Code)
(619) 696-2000
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
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Common stock outstanding: Wholly owned by Enova Corporation
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions
Three Months Ended
June 30,
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2000 1999
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Operating Revenues
Electric $473 $646
Natural gas 101 94
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Total operating revenues 574 740
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Expenses
Electric fuel and net purchased power 264 109
Cost of natural gas distributed 55 43
Operation and maintenance 79 119
Depreciation and decommissioning 52 391
Other taxes and franchise payments 19 20
Income taxes 36 (9)
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Total 505 673
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Operating Income 69 67
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Other Income and (Deductions)
Interest income 14 12
Regulatory interest (2) (2)
Allowance for equity funds used
during construction 2 2
Taxes on non-operating income (2) (4)
Other - net (5) (7)
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Total 7 1
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Income Before Interest Charges 76 68
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Interest Charges
Long-term debt 23 20
Allowance for borrowed funds used
during construction (1) (1)
Other 13 2
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Total 35 21
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Net Income 41 47
Preferred Dividend Requirements 1 1
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Earnings Applicable to Common Shares $ 40 $ 46
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See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions
Six Months Ended
June 30,
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2000 1999
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Operating Revenues
Electric $ 822 $1,006
Natural gas 223 195
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Total operating revenues 1,045 1,201
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Expenses
Electric fuel and net purchased power 397 211
Cost of natural gas distributed 102 90
Operation and maintenance 172 226
Depreciation and decommissioning 104 458
Other taxes and franchise payments 36 40
Income taxes 83 38
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Total 894 1,063
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Operating Income 151 138
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Other Income and (Deductions)
Interest income 28 17
Regulatory interest (4) (2)
Allowance for equity funds used
during construction 3 2
Taxes on non-operating income (8) (11)
Other - net (6) 6
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Total 13 12
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Income Before Interest Charges 164 150
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Interest Charges
Long-term debt 44 43
Allowance for borrowed funds used
during construction (1) (1)
Other 26 6
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Total 69 48
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Net Income 95 102
Preferred Dividend Requirements 3 3
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Earnings Applicable to Common Shares $ 92 $ 99
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See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
Balance at
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June 30, December 31,
2000 1999
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ASSETS
Utility plant - at original cost $4,620 $4,483
Accumulated depreciation and decommissioning (2,430) (2,326)
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Utility plant - net 2,190 2,157
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Nuclear decommissioning trusts 551 551
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Current assets
Cash and cash equivalents 308 337
Accounts receivable 213 192
Due from affiliates 158 152
Income taxes receivable -- 87
Inventories 46 61
Other 7 5
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Total current assets 732 834
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Other Assets
Loan to parent 406 422
Deferred taxes recoverable in rates 96 114
Regulatory assets 598 233
Deferred charges and other assets 55 55
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Total other assets 1,155 824
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Total $4,628 $4,366
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See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
Balance at
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June 30, December 31,
2000 1999
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CAPITALIZATION AND LIABILITIES
Capitalization
Common stock $ 857 $ 857
Retained earnings 351 460
Accumulated other comprehensive income (1) (3)
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Total common equity 1,207 1,314
Preferred stock not subject to mandatory redemption 79 79
Preferred stock subject to mandatory redemption 25 25
Long-term debt 1,373 1,418
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Total capitalization 2,684 2,836
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Current liabilities
Current portion of long-term debt 66 66
Accounts payable 233 155
Deferred income taxes 112 106
Regulatory balancing accounts - net 176 192
Customer refunds payable 388 --
Other 147 161
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Total current liabilities 1,122 680
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Deferred Credits and other liabilities
Customer advances for construction 44 44
Deferred income taxes - net 316 327
Deferred investment tax credits 49 51
Deferred credits and other liabilities 413 428
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Total deferred credits and other liabilities 822 850
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Commitments and contingent liabilities (Note 2)
Total $4,628 $4,366
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See notes to Consolidated Financial Statements.
UT
EXHIBIT 12.1
SAN DIEGO GAS & ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
For the six
months ended
June 30,
1995 1996 1997 1998 1999 2000
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Fixed Charges and Preferred
Stock Dividends:
Interest:
Long-Term Debt $ 82 $ 76 $ 69 $ 55 $ 49 $25
Rate Reduction Bonds -- -- -- 41 35 16
Short-Term Debt & Other 18 13 14 14 40 32
Amortization of Debt
Discount and Expense,
Less Premium 5 5 5 8 7 2
Interest Portion of
Annual Rentals 10 8 10 7 5 2
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Total Fixed
Charges 115 102 98 125 136 77
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Preferred Dividends
for Purpose of Ratio (1) 14 13 13 11 10 6
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Total Fixed Charges
and Preferred Stock
Dividends For
Purpose of Ratio $129 $115 $111 $136 $146 $83
========== ======== ======== ======== ========= ==========
Earnings:
Net Income (before
preferred dividend
requirements) $219 $222 $238 $191 $199 $95
Add:
Fixed charges
(from above) 115 102 98 125 136 77
Less: Fixed charges
capitalized 2 1 2 1 1 -
Taxes on Income 173 198 219 141 126 90
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Total Earnings for
Purpose of Ratio $505 $521 $553 $456 $460 $262
========= ======== ======== ======== ========= ==========
Ratio of Earnings
to Combined Fixed
Charges and Preferred
Stock Dividends 3.92 4.54 5.00 3.36 3.15 3.16
========= ======== ======== ======== ========= ==========
(1) In computing this ratio, "Preferred dividends" represents the before-tax earnings necessary
to pay such dividends, computed at the effective tax rates for the applicable periods.