EXHIBIT 12.1

PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
	Nine Months Ended
	September 30,			Year Ended December 31,
	2008			2007			2006			2005			2004			2003
Fixed charges, as defined by the Securities and Exchange
Commission:
Interest on long-term debt	$	72,622		$	81,638		$	84,773		$	66,042		$	34,488		$	48,483
Amortization of debt premium, discount and expenses		5,227			6,566			4,729			3,962			3,036			2,990
Other interest		21,247			32,242			44,918			13,734			1,976			3,922
Estimated interest factor of lease rental charges		13,219			19,308			19,235			19,934			18,843			19,568
Interest capitalized		415			4,119			2,982			1,421			957			1,163
Preferred dividend requirements of subsidiaries		495			556			798			4,063			881			845
Total Fixed Charges	$	113,225		$	144,429		$	157,435		$	109,156		$	60,181		$	76,971
Earnings, as defined by the Securities and Exchange
Commission:
Earnings from continuing operations before income taxes	$	(277,421	)	$	63,112		$	164,018		$	76,502		$	107,060		$	68,267
(Earnings) of equity investee		29,091			(7,581	)		-			-			-			-
Earnings from continuing operations before income taxes and  investee earnings		(248,330	)		55,531			164,018			76,502			107,060			68,267
Fixed charges as above		113,225			144,429			157,435			109,156			60,181			76,971
Interest capitalized		(415	)		(4,119	)		(2,982	)		(1,421	)		(957	)		(1,163	)
Preferred dividend requirements of subsidiaries		(495	)		(556	)		(798	)		(4,063	)		(881	)		(845	)
Earnings Available for Fixed Charges	$	(136,015	)	$	195,285		$	317,673		$	180,174		$	165,403		$	143,230
Ratio of Earnings to Fixed Charges		N/M	*		1.35			2.02			1.65			2.75			1.86
* The ratio of earnings to fixed charges for the nine months ended September 30, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $249.2 million for the nine months ended September 30, 2008.