Public Service Company of New Mexico PFD 4.58% (PNMXO) 10-Q 2011 Q2 Quarterly report

Exhibit 12.3
PUBLIC SERVICE COMPANY OF NEW MEXICO
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
	Six Months Ended				Year Ended December 31,
	June 30, 2011				2010			2009			2008				2007			2006
Fixed charges, as defined by the Securities and Exchange Commission:
Interest expensed and capitalized	$	36,024			$	73,423		$	73,104		$	72,427			$	58,045		$	49,379
Amortization of debt premium, discount and expenses	613				1,274			1,336			4,345				4,618			2,871
Interest from discontinued operations (including capitalized interest)	—				—			1,027			13,758				12,546			11,790
Estimated interest factor of lease rental charges	2,098				4,103			4,517			4,553				4,661			4,337
Total Fixed Charges	$	38,735			$	78,800		$	79,984		$	95,083			$	79,870		$	68,377
Earnings, as defined by the Securities and Exchange Commission:
Earnings (loss) from continuing operations before income taxes and non-controlling interest	$	10,583			$	107,288		$	45,627		$	(69,324	)		$	34,611		$	89,657
Fixed charges as above	38,735				78,800			79,984			95,083				79,870			68,377
Non-controlling interest in earnings of Valencia	(6,652		)		(13,563		)	(11,890		)	(7,179		)		—			—
Interest capitalized	(814		)		(2,811		)	(6,067		)	(7,363		)		(10,033		)	(5,257		)
Earnings Available for Fixed Charges	$	41,852			$	169,714		$	107,654		$	11,217			$	104,448		$	152,777
Ratio of Earnings to Fixed Charges	1.08			1	2.15			1.35			0.12			2	1.31			2.23
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the six months ended June 30, 2011 includes a pre-tax loss of $17.5 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.53.
2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $83.9 million for the year December 31, 2008.