TXNM Energy (TXNM) 10-Q 2016 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, 2016			2015			2014			2013			2012			2011
Fixed charges, as defined by the Securities and Exchange Commission:
Interest expensed and capitalized	$	20,806		$	25,875		$	24,941		$	24,481		$	26,233		$	27,914
Amortization of debt premium, discount and expenses	779			1,100			1,195			1,159			1,493			1,679
Estimated interest factor of lease rental charges	894			1,229			1,311			1,241			956			1,202
Total Fixed Charges	$	22,479		$	28,204		$	27,447		$	26,881		$	28,682		$	30,795
Earnings, as defined by the Securities and Exchange Commission:
Earnings from continuing operations before income taxes	$	50,277		$	66,088		$	60,330		$	46,711		$	42,099		$	36,138
Fixed charges as above	22,479			28,204			27,447			26,881			28,682			30,795
Interest capitalized	(539		)	(593		)	(609		)	(361		)	(706		)	(593		)
Earnings Available for Fixed Charges	$	72,217		$	93,699		$	87,168		$	73,231		$	70,075		$	66,340
Ratio of Earnings to Fixed Charges	3.21			3.32			3.18			2.72			2.44			2.15			1
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 was excluded, the Ratio of Earnings to Fixed Charges would have been 2.28.