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| Exhibit 12.1 |
| PNM RESOURCES, INC. AND SUBSIDIARIES |
| Ratio of Earnings to Fixed Charges |
| (In thousands, except ratio) |
| | | | | | | | | | | | | | |
| | | Six Months Ended | | Year Ended December 31, | |
| | | June 30, 2015 | | 2014 | | 2013 | | 2012 | | 2011 | | 2010 | |
| Fixed charges, as defined by the Securities and Exchange Commission: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Interest expensed and capitalized | | $ | 59,279 |
| | $ | 117,337 |
| | $ | 118,880 |
| | $ | 125,379 |
| | $ | 122,998 |
| | $ | 123,633 |
| |
| Amortization of debt premium, discount, and expenses | | 1,716 |
| | 4,194 |
| | 3,716 |
| | 4,023 |
| | 3,695 |
| | 4,627 |
| |
| Estimated interest factor of lease rental charges | | 1,873 |
| | 4,686 |
| | 5,847 |
| | 5,585 |
| | 6,665 |
| | 6,888 |
| |
| Preferred dividend requirements of subsidiary | | 392 |
| | 809 |
| | 800 |
| | 769 |
| | 864 |
| | 1,075 |
| |
| Total Fixed Charges | | $ | 63,260 |
| | $ | 127,026 |
| | $ | 129,243 |
| | $ | 135,756 |
| | $ | 134,222 |
| | $ | 136,223 |
| |
| | | | | | | | | | | | | | |
| Earnings, as defined by the Securities and Exchange Commission: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Earnings (loss) from continuing operations before income taxes and non-controlling interest | | $ | 79,378 |
| | $ | 200,647 |
| | $ | 175,069 |
| | $ | 175,035 |
| | $ | 321,469 |
| | $ | (63,379 | ) | |
| (Earnings) loss of equity investee | | — |
| | — |
| | — |
| | — |
| | — |
| | 15,223 |
| |
| Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings | | 79,378 |
| | 200,647 |
| | 175,069 |
| | 175,035 |
| | 321,469 |
| | (48,156 | ) | |
| Fixed charges as above | | 63,260 |
| | 127,026 |
| | 129,243 |
| | 135,756 |
| | 134,222 |
| | 136,223 |
| |
| Interest capitalized | | (3,362 | ) | | (6,256 | ) | | (5,209 | ) | | (5,432 | ) | | (2,697 | ) | | (3,401 | ) | |
| Non-controlling interest in earnings of Valencia | | (7,231 | ) | | (14,127 | ) | | (14,521 | ) | | (14,050 | ) | | (14,047 | ) | | (13,563 | ) | |
| Preferred dividend requirements of subsidiary | | (392 | ) | | (809 | ) | | (800 | ) | | (769 | ) | | (864 | ) | | (1,075 | ) | |
| Earnings Available for Fixed Charges | | $ | 131,653 |
| | $ | 306,481 |
| | $ | 283,782 |
| | $ | 290,540 |
| | $ | 438,083 |
| | $ | 70,028 |
| |
| | | | | | | | | | | | | | |
| Ratio of Earnings to Fixed Charges | | 2.08 |
| 1 | 2.41 |
| 2 | 2.20 |
| 2 | 2.14 |
| | 3.26 |
| 3 | 0.51 |
| 4 |
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1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the six months ended June 30, 2015 includes a pre-tax loss of $1.7 million due to the write-off of regulatory disallowances at PNM. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.11. |
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2 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the years ended December 31, 2014 and December 31, 2013 includes pre-tax losses of $1.1 and $12.2 million due to the write-off of regulatory disallowances at PNM. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.42 for 2014 and 2.29 for 2013. |
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3 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes pre-tax losses of $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 3.42. In addition, 2011 includes a pre-tax gain on the sale of First Choice of $174.9 million. If that gain were also excluded, the Ratio of Earnings to Fixed Charges would have been 1.96. |
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4 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010. Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR's investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90. |
