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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, 1999
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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 (Unaudited)
(Dollars in millions)
Three Months Ended
June 30,
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1999 1998
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Operating Revenues:
Electric $646 $476
Natural gas 94 93
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Total operating revenues 740 569
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Expenses:
Purchased power - net 88 63
Electric fuel 21 36
Natural gas purchased for resale 43 38
Operation and maintenance 119 167
Depreciation and decommissioning 391 178
Other taxes and franchise payments 20 20
Income taxes (9) 22
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Total 673 524
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Operating Income 67 45
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Other Income and (Deductions):
Regulatory interest - net (2) 1
Allowance for equity funds used
during construction 2 1
Income taxes on nonoperating income (4) (6)
Other - net 8 13
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Total 4 9
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Income Before Interest Charges 71 54
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Interest Charges:
Long-term debt 21 24
Other 3 3
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Total 24 27
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Net Income 47 27
Preferred Dividend Requirements 1 2
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Earnings Applicable to Common Shares $ 46 $ 25
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See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in millions)
Six Months Ended
June 30,
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1999 1998
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Operating Revenues:
Electric $1,006 $973
Natural gas 195 202
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Total operating revenues 1,201 1,175
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Expenses:
Purchased power - net 154 159
Electric fuel 57 67
Natural gas purchased for resale 90 90
Operation and maintenance 226 266
Depreciation and decommissioning 458 377
Other taxes and franchise payments 40 43
Income taxes 38 51
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Total 1,063 1,053
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Operating Income 138 122
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Other Income and (Deductions):
Regulatory interest - net (2) -
Allowance for equity funds used
during construction 2 2
Income taxes on nonoperating income (11) (9)
Other - net 23 17
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Total 12 10
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Income Before Interest Charges 150 132
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Interest Charges:
Long-term debt 43 51
Other 5 4
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Total 48 55
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Net Income 102 77
Preferred Dividend Requirements 3 3
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Earnings Applicable to Common Shares $ 99 $ 74
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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,
1999 1998
(Unaudited)
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ASSETS
Utility plant - at original cost $4,376 $4,903
Less accumulated depreciation and decommissioning (2,233) (2,603)
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Utility plant - net 2,143 2,300
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Nuclear decommissioning trust 507 494
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Current assets:
Cash and temporary investments 355 284
Accounts receivable 219 199
Due from affiliates 453 110
Inventories 47 77
Regulatory balancing accounts undercollected - net -- 9
Other 23 17
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Total current assets 1,097 696
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Deferred taxes recoverable in rates 99 194
Regulatory assets 253 511
Deferred charges and other assets 58 62
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Total $4,157 $4,257
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CAPITALIZATION AND LIABILITIES
Capitalization:
Common equity $1,224 $1,124
Preferred stock not subject to mandatory redemption 78 78
Preferred stock subject to mandatory redemption 25 25
Long-term debt 1,486 1,548
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Total capitalization 2,813 2,775
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Current liabilities:
Long-term debt due within one year 66 72
Accounts payable 139 165
Taxes payable 44 --
Dividends payable 2 102
Interest accrued 9 9
Regulatory balancing accounts overcollected - net 146 --
Other 127 185
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Total current liabilities 533 533
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Customer advances for construction 46 41
Deferred income taxes - net 293 397
Deferred investment tax credits 55 89
Deferred credits and other liabilities 417 422
Commitments and contingent liabilities (Note 3)
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Total $4,157 $4,257
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See notes to Consolidated Financial Statements.
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
1994 1995 1996 1997 1998 6/30/99
-------- -------- -------- -------- --------- ---------
Fixed Charges and Preferred
Stock Dividends:
Interest:
Long-Term Debt $ 82 $ 82 $ 76 $ 70 $ 55 $25
Short-Term Debt 9 18 13 14 13 7
Rate Reduction Bonds -- -- -- -- 41 18
Amortization of Debt
Discount and Expense,
Less Premium 5 5 5 5 8 4
Interest Portion of
Annual Rentals 9 10 8 9 8 3
-------- -------- -------- ------- --------- ----------
Total Fixed
Charges 105 115 102 98 125 57
-------- -------- -------- -------- --------- ----------
Preferred Dividend
Requirements 8 8 7 7 7 3
Ratio of Income Before
Tax to Net Income 1.83501 1.78991 1.88864 1.91993 1.73993 1.47447
-------- -------- -------- -------- --------- ----------
Preferred Dividends
for Purpose of Ratio 14 14 13 13 11 5
-------- -------- -------- -------- --------- ----------
Total Fixed Charges
and Preferred Stock
Dividends For
Purpose of Ratio $119 $129 $115 $111 $136 $ 62
======== ======== ======== ======== ========= =========
Earnings:
Net Income (before
preferred dividend
requirements) $206 $219 $223 $238 $191 $102
Add:
Fixed charges
(from above) 105 115 102 98 125 57
Less: Fixed charges
capitalized 1 2 1 2 1 1
Taxes on Income 172 173 198 219 141 49
-------- -------- -------- -------- --------- ----------
Total Earnings for
Purpose of Ratio $482 $505 $522 $553 $456 $207
======== ======== ======== ======== ========= ==========
Ratio of Earnings
to Combined Fixed
Charges and Preferred
Stock Dividends 4.06 3.92 4.54 5.00 3.36 3.34
======== ======== ======== ======== ========= ==========
UT