TXNM Energy (TXNM) 10-Q 2014 Q3 Quarterly report

Exhibit 12.3
TEXAS-NEW MEXICO POWER COMPANY
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
	Nine Months Ended			Year Ended December 31,
	September 30, 2014			2013			2012			2011				2010			2009
Fixed charges, as defined by the Securities and Exchange Commission:
Interest expensed and capitalized	$	18,127		$	24,481		$	26,233		$	27,914			$	28,632		$	25,609
Amortization of debt premium, discount and expenses	865			1,159			1,493			1,679				2,683			3,355
Estimated interest factor of lease rental charges	931			1,241			956			1,202				1,246			831
Total Fixed Charges	$	19,923		$	26,881		$	28,682		$	30,795			$	32,561		$	29,795
Earnings, as defined by the Securities and Exchange Commission:
Earnings from continuing operations before income taxes	$	45,772		$	46,711		$	42,099		$	36,138			$	26,026		$	20,151
Fixed charges as above	19,923			26,881			28,682			30,795				32,561			29,795
Interest capitalized	(414		)	(361		)	(706		)	(593		)		(158		)	(1,144		)
Earnings Available for Fixed Charges	$	65,281		$	73,231		$	70,075		$	66,340			$	58,429		$	48,802
Ratio of Earnings to Fixed Charges	3.28			2.72			2.44			2.15			1	1.79			1.64
1 Earnings from continuing operations before income taxes for the year ended December 31, 2011 includes a pre-tax loss of $3.9 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.28.