Exhibit 12(a) TEXAS-NEW MEXICO POWER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - CONSOLIDATED (THOUSANDS OF DOLLARS) 12 MONTHS YEAR ENDED DECEMBER 31, ENDED ------------------------------------------------- SEPTEMBER 30, 1998 1997 1996 1995 1994 1993 ------------------ ---- ---- ---- ---- ---- EARNINGS AS DEFINED (1) Net Income $ 38,094 $ 43,918 $ 26,862 $ 41,809 $(16,634) $ 11,523 Income Taxes 19,085 21,805 9,611 22,189 (11,932) 4,916 Fixed Charges 54,268 57,057 69,513 74,115 75,412 68,109 -------- -------- -------- -------- -------- -------- Earnings as defined 111,268 122,780 105,986 138,113 46,846 84,548 -------- -------- -------- -------- -------- -------- FIXED CHARGES AS DEFINED (2) Interest 49,442 52,557 64,654 70,544 71,568 63,833 Amortization of debt discount, premium, & expense 4,504 4,355 4,709 3,416 3,680 4,108 Estimated portion of interest implicit in rentals (3) 143 145 150 155 164 168 -------- -------- -------- -------- -------- -------- Fixed charges as defined 54,089 57,057 69,513 74,115 75,412 68,109 -------- -------- -------- -------- -------- -------- RATIO OF EARNINGS TO FIXED CHARGES 2.06 2.15 1.52 1.86 * 1.24 * Earnings were insufficient to fund fixed charges by $28.6 million. (1) Earnings are defined as net income plus income taxes plus fixed charges. (2) Fixed charges consist of total interest; amortization of debt discount, premium, and expense; and the estimated portion of interest implicit in rentals. (3) This amount is estimated to be a reasonable approximation of the interest portion of rentals.