Public Service Company of New Mexico PFD 4.58% (PNMXO) 10-Q 2011 Q3 Quarterly report

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, 2011					2010				2009			2008				2007			2006
Fixed charges, as defined by the Securities and Exchange Commission:
Interest expensed and capitalized		$	90,970			$	123,633			$	123,833		$	134,958			$	124,299		$	135,819
Amortization of debt premium, discount and expenses		2,741				4,627				5,430			6,386				6,566			4,729
Interest from discontinued operations (including capitalized interest)		—				—				1,027			13,758				12,546			11,790
Estimated interest factor of lease rental charges		5,130				6,888				7,034			7,894				8,804			7,124
Preferred dividend requirements of subsidiary		591				1,075				759			689				556			798
Total Fixed Charges		$	99,432			$	136,223			$	138,083		$	163,685			$	152,771		$	160,260
Earnings, as defined by the Securities and Exchange Commission:
Earnings (loss) from continuing operations before income taxes and non-controlling interest		$	112,732			$	(63,379	)		$	94,751		$	(388,381	)		$	63,112		$	164,018
(Earnings) loss of equity investee		—				15,223				30,145			29,687				(7,581		)	—
Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings		112,732				(48,156		)		124,896			(358,694		)		55,531			164,018
Fixed charges as above		99,432				136,223				138,083			163,685				152,771			160,260
Interest capitalized		(1,886		)		(3,401		)		(7,743		)	(8,849		)		(10,740		)	(6,503		)
Non-controlling interest in earnings of Valencia		(10,764		)		(13,563		)		(11,890		)	(7,179		)		—			—
Preferred dividend requirements of subsidiary		(591		)		(1,075		)		(759		)	(689		)		(556		)	(798		)
Earnings Available for Fixed Charges		$	198,923			$	70,028			$	242,587		$	(211,726	)		$	197,006		$	316,977
Ratio of Earnings to Fixed Charges		2.00			1	0.51			2	1.76			N/M			3	1.29			1.98
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the nine months ended September 30, 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 2.22.
2 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.
3 The ratio of earnings to fixed charges for the year ended December 31, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008.