El Paso Electric 10-K 2008 FY Annual report

EXHIBIT 12.01

EL PASO ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Thousands)

	Years Ended December 31,
	2008		2007		2006		2005		2004
Earnings from Continuing Operations (a)	115,451		109,220		87,453		55,204		42,567
Fixed Charges (b)
Interest charges	48,813		37,648		36,744		41,461		49,703
Interest portion of rent expense	1,085		1,181		1,186		1,251		1,141
Total Fixed Charges	49,898		38,829		37,930		42,712		50,844
Capitalized Interest	(15,872	)	(11,897	)	(4,907	)	(5,783	)	(3,427	)
Earnings (c)	149,477		136,152		120,476		92,133		89,984
Ratio of Earnings to Fixed Charges	3.0		3.5		3.2		2.2		1.8

(a) Earnings from continuing operations consist of income from continuing operations before income taxes, extraordinary item and cumulative effects of accounting changes.

(b) Fixed charges consist of all interest on indebtedness, amortization of debt discount and expense and the estimated portion of rental expense that represents an interest factor.

(c) Earnings consist of earnings from continuing operations and fixed charges less AFUDC and capitalized interest.