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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 September 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
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions
Three Months Ended
September 30,
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2000 1999
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Operating Revenues
Electric $ 645 $ 438
Natural gas 86 82
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Total operating revenues 731 520
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Expenses
Electric fuel and net purchased power 444 181
Cost of natural gas distributed 52 29
Operation and maintenance 105 111
Depreciation and decommissioning 53 52
Other taxes and franchise payments 26 20
Income taxes 18 45
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Total 698 438
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Operating Income 33 82
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Other Income and (Deductions)
Interest income 16 9
Regulatory interest (4) (1)
Allowance for equity funds used
during construction 2 1
Taxes on non-operating income (5) (11)
Other - net 2 17
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Total 11 15
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Income Before Interest Charges 44 97
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Interest Charges
Long-term debt 21 21
Other 6 15
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Total 27 36
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Net Income 17 61
Preferred Dividend Requirements 2 2
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Earnings Applicable to Common Shares $ 15 $ 59
========= =========
See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions
Nine Months Ended
September 30,
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2000 1999
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Operating Revenues
Electric $1,467 $1,443
Natural gas 309 277
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Total operating revenues 1,776 1,720
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Expenses
Electric fuel and net purchased power 841 391
Cost of natural gas distributed 154 119
Operation and maintenance 277 337
Depreciation and decommissioning 157 510
Other taxes and franchise payments 62 60
Income taxes 101 83
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Total 1,592 1,500
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Operating Income 184 220
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Other Income and (Deductions)
Interest income 44 26
Regulatory interest (8) (3)
Allowance for equity funds used
during construction 5 3
Taxes on non-operating income (13) (22)
Other - net (4) 23
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Total 24 27
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Income Before Interest Charges 208 247
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Interest Charges
Long-term debt 61 63
Allowance for borrowed funds used
during construction (1) (1)
Other 36 21
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Total 96 83
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Net Income 112 164
Preferred Dividend Requirements 5 5
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Earnings Applicable to Common Shares $ 107 $ 159
======== =========
See notes to Consolidated Financial Statements.
SAN DIEGO GAS & ELECTRIC COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
Balance at
-------------------------
September 30, December 31,
2000 1999
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ASSETS
Utility plant - at original cost $4,679 $4,483
Accumulated depreciation and decommissioning (2,492) (2,326)
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Utility plant - net 2,187 2,157
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Nuclear decommissioning trusts 578 551
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Current assets
Cash and cash equivalents 210 337
Accounts receivable 309 192
Due from affiliates 279 152
Income taxes receivable 3 87
Inventories 62 61
Other 9 5
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Total current assets 872 834
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Other Assets
Loan to parent -- 422
Deferred taxes recoverable in rates 90 114
Regulatory assets 696 233
Deferred charges and other assets 54 55
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Total other assets 840 824
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Total $4,477 $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
-------------------------
September 30, December 31,
2000 1999
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CAPITALIZATION AND LIABILITIES
Capitalization
Common stock $ 857 $ 857
Retained earnings 167 460
Accumulated other comprehensive income (1) (3)
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Total common equity 1,023 1,314
Preferred stock not subject to mandatory redemption 79 79
Preferred stock subject to mandatory redemption 25 25
Long-term debt 1,361 1,418
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Total capitalization 2,488 2,836
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Current liabilities
Current portion of long-term debt 66 66
Accounts payable 256 155
Deferred income taxes 95 106
Regulatory balancing accounts - net 281 192
Customer refunds payable 254 --
Other 174 161
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Total current liabilities 1,126 680
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Deferred Credits and other liabilities
Customer advances for construction 43 44
Deferred income taxes 353 327
Deferred investment tax credits 48 51
Deferred credits and other liabilities 419 428
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Total deferred credits and other liabilities 863 850
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Commitments and contingent liabilities (Note 2)
Total $4,477 $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 nine
months ended
September 30,
1995 1996 1997 1998 1999 2000
--------- -------- -------- --------- --------- ---------
Fixed Charges and Preferred
Stock Dividends:
Interest:
Long-Term Debt $ 82 $ 76 $ 69 $ 55 $ 49 $37
Rate Reduction Bonds -- -- -- 41 35 24
Short-Term Debt & Other 18 13 14 14 40 32
Amortization of Debt
Discount and Expense,
Less Premium 5 5 5 8 7 4
Interest Portion of
Annual Rentals 10 8 10 7 5 2
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Total Fixed
Charges 115 102 98 125 136 99
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Preferred Dividends
for Purpose of Ratio (1) 14 13 13 11 10 10
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Total Fixed Charges
and Preferred Stock
Dividends For
Purpose of Ratio $129 $115 $111 $136 $146 $109
========== ======== ======== ======== ========= =========
Earnings:
Net Income (before
preferred dividend
requirements) $219 $222 $238 $191 $199 $112
Add:
Fixed charges
(from above) 115 102 98 125 136 99
Less: Fixed charges
capitalized 2 1 2 1 1 --
Taxes on Income 173 198 219 141 126 114
--------- - ------- -------- --------- --------- --------
Total Earnings for
Purpose of Ratio $505 $521 $553 $456 $460 $325
========= ======== ======== ======== ========= ========
Ratio of Earnings
to Combined Fixed
Charges and Preferred
Stock Dividends 3.92 4.54 5.00 3.36 3.15 2.98
========= ======== ======== ======== ========= ========
(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.