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| Exhibit 12.1 |
| PNM RESOURCES, INC. AND SUBSIDIARIES |
| Ratio of Earnings to Fixed Charges |
| (In thousands, except ratio) |
| | | | | | | | | | | | | | |
| | | Nine Months Ended | | Year Ended December 31, | |
| | | September 30, 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | 2011 | |
| Fixed charges, as defined by the Securities and Exchange Commission: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Interest expensed and capitalized | | $ | 97,970 |
| | $ | 117,932 |
| | $ | 117,337 |
| | $ | 118,880 |
| | $ | 125,379 |
| | $ | 122,998 |
| |
| Amortization of debt premium, discount, and expenses | | 2,839 |
| | 3,575 |
| | 4,194 |
| | 3,716 |
| | 4,023 |
| | 3,695 |
| |
| Estimated interest factor of lease rental charges | | 2,094 |
| | 3,298 |
| | 4,686 |
| | 5,847 |
| | 5,585 |
| | 6,665 |
| |
| Preferred dividend requirements of subsidiary | | 588 |
| | 784 |
| | 809 |
| | 800 |
| | 769 |
| | 864 |
| |
| Total Fixed Charges | | $ | 103,491 |
| | $ | 125,589 |
| | $ | 127,026 |
| | $ | 129,243 |
| | $ | 135,756 |
| | $ | 134,222 |
| |
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| Earnings, as defined by the Securities and Exchange Commission: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Earnings from continuing operations before income taxes and non-controlling interest | | $ | 153,567 |
| | $ | 46,153 |
| | $ | 200,647 |
| | $ | 175,069 |
| | $ | 175,035 |
| | $ | 321,469 |
| |
| Fixed charges as above | | 103,491 |
| | 125,589 |
| | 127,026 |
| | 129,243 |
| | 135,756 |
| | 134,222 |
| |
| Interest capitalized | | (6,045 | ) | | (9,753 | ) | | (6,256 | ) | | (5,209 | ) | | (5,432 | ) | | (2,697 | ) | |
| Non-controlling interest in earnings of Valencia | | (11,037 | ) | | (14,910 | ) | | (14,127 | ) | | (14,521 | ) | | (14,050 | ) | | (14,047 | ) | |
| Preferred dividend requirements of subsidiary | | (588 | ) | | (784 | ) | | (809 | ) | | (800 | ) | | (769 | ) | | (864 | ) | |
| Earnings Available for Fixed Charges | | $ | 239,388 |
| | $ | 146,295 |
| | $ | 306,481 |
| | $ | 283,782 |
| | $ | 290,540 |
| | $ | 438,083 |
| |
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| Ratio of Earnings to Fixed Charges | | 2.31 |
| 1 | 1.16 |
| 2 | 2.41 |
| 3 | 2.20 |
| 3 | 2.14 |
| | 3.26 |
| 4 |
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| 1 Earnings from continuing operations before income taxes and non-controlling interest for the nine months ended September 30, 2016 includes a pre-tax loss of $17.2 million due to the write-off of regulatory disallowances and restructuring costs at PNM. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.48. |
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2 Earnings from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2015 includes a pre-tax loss of $167.5 million due to the write-off of regulatory disallowances and restructuring costs at PNM. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.50 for 2015. |
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3 Earnings from continuing operations before income taxes and non-controlling interest for the years ended December 31, 2014 and December 31, 2013 include pre-tax losses of $1.1 million 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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4 Earnings 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 that loss was 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 was also excluded, the Ratio of Earnings to Fixed Charges would have been 1.96. |
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