EX-12.1 8 exh12-1_033110.htm EXHIBIT 12.1 exh12-1_033110.htm
Exhibit 12.1

PNM RESOURCES, INC. AND SUBSIDIARIES
  
Ratio of Earnings to Fixed Charges
  
(In thousands, except ratio)
  
                               
                               
   
Three Months Ended
    
Year Ended December 31,
  
   
March 31, 2010
    
2009
    
2008
    
2007
    
2006
  
Fixed charges, as defined by the Securities and Exchange
                              
Commission:
                              
                               
Interest expensed and capitalized
   $ 31,306     $ 123,833     $ 134,958     $ 124,299     $ 135,819  
Amortization of debt premium, discount and expenses
     1,178       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
     1,384       7,034       7,894       8,804       7,124  
Preferred dividend requirements of subsidiary
     257       759       689       556       798  
     Total Fixed Charges
   $ 34,125     $ 138,083     $ 163,685     $ 152,771     $ 160,260  
                                         
                                         
                                         
Earnings, as defined by the Securities and Exchange
                                        
Commission:
                                        
                                         
Earnings from continuing operations before income taxes and non-controlling interest
   $ (10,153 )   $ 94,751     $ (388,381 )   $ 63,112     $ 164,018  
(Earnings) loss of equity investee
     4,352       30,145       29,687       (7,581 )     -  
Earnings from continuing operations before income taxes, non-controlling interest, and investee earnings
     (5,801 )     124,896       (358,694 )     55,531       164,018  
Fixed charges as above
     34,125       138,083       163,685       152,771       160,260  
Interest capitalized
     (1,186 )     (7,743 )     (8,849 )     (10,740 )     (6,503 )
Non-controlling interest in earnings of Valencia
     (3,103 )     (11,890 )     (7,179 )     -       -  
Preferred dividend requirements of subsidiary
     (257 )     (759 )     (689 )     (556 )     (798 )
                                         
Earnings Available for Fixed Charges
   $ 23,778     $ 242,587     $ (211,726 )   $ 197,006     $ 316,977  
                                         
Ratio of Earnings to Fixed Charges
     0.70 *     1.76       N/M *     1.29       1.98  
                                         
* 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 for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $10.3 million for the three months ended March 31, 2010 and $375.4 million for the year ended December 31, 2008.