Texas New Mexico Power 10-K 2013 FY Annual report

	Exhibit 12.1
PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
		Year Ended December 31,
		2013				2012			2011				2010				2009
	Fixed charges, as defined by the Securities and Exchange Commission:
	Interest expensed and capitalized	$	118,880			$	125,379		$	122,998			$	123,633			$	123,833
	Amortization of debt premium, discount and expenses	3,716				4,023			3,695				4,627				5,430
	Interest from discontinued operations (including capitalized interest)	—				—			—				—				1,027
	Estimated interest factor of lease rental charges	5,847				5,585			6,665				6,888				7,034
	Preferred dividend requirements of subsidiary	800				769			864				1,075				759
	Total Fixed Charges	$	129,243			$	135,756		$	134,222			$	136,223			$	138,083
	Earnings, as defined by the Securities and Exchange Commission:
	Earnings (loss) from continuing operations before income taxes and non-controlling interest	$	175,069			$	175,035		$	321,469			$	(63,379	)		$	94,751
	(Earnings) loss of equity investee	—				—			—				15,223				30,145
	Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings	175,069				175,035			321,469				(48,156		)		124,896
	Fixed charges as above	129,243				135,756			134,222				136,223				138,083
	Interest capitalized	(5,209		)		(5,432		)	(2,697		)		(3,401		)		(7,743		)
	Non-controlling interest in earnings of Valencia	(14,521		)		(14,050		)	(14,047		)		(13,563		)		(11,890		)
	Preferred dividend requirements of subsidiary	(800		)		(769		)	(864		)		(1,075		)		(759		)
	Earnings Available for Fixed Charges	$	283,782			$	290,540		$	438,083			$	70,028			$	242,587
	Ratio of Earnings to Fixed Charges	2.20			1	2.14			3.26			2	0.51			3	1.76
	1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2013 includes a pre-tax loss of $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 2.29.
	2 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss 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.
	3 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.