EX-12.2 4 pnm9302011ex122.htm EXHIBIT 12.2 PNM 9.30.2011 EX.12.2


Exhibit 12.2
 
PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(In thousands, except ratio)
 
 
 
Nine Months Ended
 
Year Ended December 31,
 
 
September 30, 2011
 
2010
 
2009
 
2008
 
2007
 
2006
Combined fixed charges and preferred stock dividends, 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

 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock dividend requirements
 
1,783

 
4,865

 
3,433

 
780

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Combined Fixed Charges and Preferred Stock Dividends
 
$
101,215

 
$
141,088

 
$
141,516

 
$
164,465

 
$
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 Combined Fixed Charges and Preferred Stock Dividends
 
$
198,923

 
$
70,028

 
$
242,587

 
$
(211,726
)
 
$
197,006

 
$
316,977

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
 
1.97

1 
0.50

2 

1.71

 
 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 combined fixed charges and preferred stock dividends would have been 2.18.
 
 
 
 
 
 
 
 
 
 
 
 
 
2 The shortfall in the earnings available for combined fixed charges and preferred stock dividends to achieve a ratio of earnings to combined fixed charges and preferred stock dividends of 1.00 amounted to $71.1 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 combined fixed charges and preferred stock dividends would have been 1.83.
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 The ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2008 is not meaningful since earnings available for combined fixed charges and preferred stock dividends is negative. The shortfall in the earnings available for combined fixed charges and preferred stock dividends to achieve a ratio of earnings to combined fixed charges and preferred stock dividends of 1.00 amounted to $376.2 million for the year ended December 31, 2008.